JK Tyre Q3 PAT Sees A Dip Of 52.9% At Rs 11.65 Crore
Published On 04-Feb-2020 17:17:37
In its previous fiscal (October - December 2018) JK Tyre recorded a consolidated PAT of Rs 24.74 crore
JK Tyre on Jan 31, 2020, Friday posted a major plunge of nearly 53% in its consolidated Profit After Tax (PAT). The PAT stood at Rs 11.65 crore for the latest quarter that ended on December 31 last year. According to the regulatory filing of India’s leading tyre manufacturer, a year ago during the same period, it registered a combined PAT of Rs 24.74 crore for the October-December 2018 quarter. The consolidated revenue from operations also witnessed a drop of 19.44% at Rs 2,199.80 crore in the last quarter of 2019 against Rs 2,730.77 crore recorded in the same period of previous fiscal.
“It was indeed a challenging quarter for the automotive industry. Passenger and commercial vehicles have witnessed a drastic cut in production. JK Tyre has dealt with this difficult situation by focusing on replacement sales and exports. This twin strategy augurs well for the future." JK Tyre & Industries Ltd., Chairman & MD, Raghupati Singhania, stated.
Due to the decline in demand, a sizable descend in production was observed in the passenger and commercial vehicles. And to overcome this decline, JK Tyre concentrated on the replacement sales and overseas market. This resulted in a positive up of 13% in sales against the 2018 Oct-Dec quarter on a standalone basis, with a record turnover of Rs 1,568 crore and operating profit of Rs 170 crore. Also, the exports have seen an upward movement by around 40% during the nine-month period of the ongoing fiscal.
Moreover, on a standalone basis, JK Tyre’s Profit Before Tax (PBT) was registered at Rs 29 crore, whereas on a consolidated basis it stood at Rs 23 crore in Q3 of the current fiscal. Other entities of JK Tyre – JK Tornel (Mexico) and Cavendish Industries Ltd. – continue to perform well, tyre manufacturer informed.