JK Tyre share price skyrockets! Share up nearly 11 pc after Q2 results

JK Tyre and Industries share price on Thursday closed with nearly 11 per cent gains after the company reported an increase in revenue from operations for the quarter ended September. The stock jumped 9.41 per cent to close at Rs 66.30 on BSE. During the day, it rose by 10.72 per cent to Rs 67.10. On NSE, it gained 10.73 per cent to settle at Rs 67.05. In volume terms, 13.69 lakh shares were traded at BSE and over one crore shares on NSE. The company on Wednesday reported that its revenue from operations increased to Rs 2,274.84 crore as compared with Rs 2,154.95 crore in the year-ago period. 

However, its consolidated net profit declined 34.59 per cent to Rs 109.68 crore for the quarter ended September. The company had posted a net profit of Rs 167.7 crore in the July-September period of previous fiscal. "The company achieved higher sales on the back of economic recovery, more so in the automotive sector, which has taken place during the quarter. The company was well positioned to take benefit of this emerging opportunity...," JK Tyre Chairman and Managing Director Raghupati Singhania said in a statement. The renewed thrust on exports resulted in higher export sales of Rs 337 crore during the quarter, he added. "Profitability improved significantly due to aggressive cost cutting, more particularly fixed costs. The company could achieve savings in interest costs due to its ability to reduce its working capital requirements," Singhania noted. The company said its board has appointed Anshuman Singhania as managing director with effect from October 21, 2020.
 

The story has been taken from a news agency