JK Tyre announces financial results
Registers revenue of Rs. 8,753 crores
JK Tyre & Industries has announced its results for Financial Year ending March 31, 2020. Net Revenue were at Rs.8,753 crores while Operating Profit for the year was Rs. 1,016 crores. Profit after Tax was Rs. 141 crores on a consolidated basis.
Commenting upon the results, Dr. Raghupati Singhania, Chairman and Managing Director of the Company said, “Tyre industry has been facing a downturn before the current pandemic, which further aggravated the situation posing unprecedented challenges. As a consequence, both the commercial and passenger segments have been severely impacted. Despite this, the Company posted higher sales in passenger car and 2-3 wheeler segments. In addition, exports registered a growth of 37% with renewed focus”.
Dr. Singhania added, “At JK Tyre, our prime concern has been the welfare of our people and their families across all our locations in India and Mexico. We accord highest priority to their safety and well being more so, in this extraordinary challenging COVID-19 situation”.
He further added, “the Company also encountered headwinds on the currency front with the Indian rupee weakening significantly towards the end of the Financial Year 2019-20. US Dollar liability of the Company along with its subsidiaries Cavendish and JK Tornel, Mexico had to be recorded at the exchange rates prevailing on the last day of the Financial Year, which though exceptional and notional in nature, impacted the Profit Before Tax”.
Dr. Singhania further added, “During this period, we have taken several measures to reduce fixed costs across all activities. We have restarted our plants and are working to streamline operations and sales to ensure sustainable growth and improved profitability.”