JK Tyre & Industries Ltd on has reported a multi-fold jump in consolidated net profit at Rs 230.46 crore in the third quarter ended December 31, 2020 riding on vigorous sales and aided by favourable foreign exchange fluctuations.
Reacting to the development, Shares of JK Tyre & Industries Ltd surged a whopping 16.59 percent at Rs 134.90 per share on the National Stock Exchange on Friday during mid-session.
The company had posted a net profit-console of Rs 10.27 crore in the third quarter of last fiscal, JK Tyre & Industries said in a regulatory filing. Consolidated revenue from operations during the period under review stood at Rs 2,769.28 crore v/s Rs 2,199.80 crore in the corresponding quarter last fiscal. ''For the quarter, exceptional items include favourable foreign exchange fluctuation of Rs 40.18 crore,'' the tyre major said.
Commenting on the performance, JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said,'' JK Tyre turned out an excellent performance in Q3 - in terms of sales and profitability. This was largely driven by the increased demand for passenger, commercial vehicle as well as farm tyres.''
He further said continued focus on improvement in operating efficiencies and reduction in interest costs, contributed to improved profitability. During the third quarter all the nine units of the company in India operated at close to 96 per cent capacity utilisation, Singhania said.