JK Tyre Records 6% Rise In Net Sales In Q1

JK Tyre & Industries Ltd. (JK Tyre) has announced its results for Q1 of the current Financial Year. On a Consolidated basis, Net Sales at Rs. 2,581 Crores is higher by 6%. Operating Profit for the Qtr. is Rs. 246 Crores.

Commenting on the results, Dr. Raghupati Singhania, Chairman and Managing Director of the Company said, “it was a difficult Quarter for Auto Industry, which is passing through challenging times. The Quarter ending June 2019 witnessed considerable de-growth in Auto sales. Most of the OEMs have reported a heavy reduction in their sales volumes. Despite this, the Company has recorded 18% growth in the overall replacement market which could partly offset lower sales in the OEM segment and exports growth of over 50% over the corresponding period with overall volume growth of 10%”.

Dr Singhania further added, “that profitability during the Qtr has been impacted due to overall slow-down in the automotive sector”.

Despite strong headwinds, the company continued its relentless efforts to achieve higher sales volumes in 2/3 Wheeler segment.

The Company expects the economy to improve from the second half of the current year when the volumes are expected to pick-up resulting in improvement in profitability.

The Company’s subsidiaries namely, JK Tornel, Mexico and Cavendish Industries Ltd. have performed well during the Quarter.