Leading home-grown tyre major JK Tyre & Industries Ltd. has announced its performance results for the year FY21. The company’s consolidated net revenues for FY21 stood at Rs. 9,145 crore, up by 4% over the previous year. It clocked EBIDTA of Rs. 1,349 crore, a 33% increase with margin expansion of 310 bps. The company’s PAT for the year stood at Rs. 331 crore, an increase of 134%. The company’s Board has recommended a dividend of 100 % on its equity shares.
Commenting on the results, Dr. Raghupati Singhania, Chairman, said, “The year began with India in lockdown due to COVID-19 pandemic and the economy grinding to a halt with Q1 FY21 almost a wash out. The economy started opening up gradually from mid-May. As a result of several initiatives taken JK Tyre recovered fast and achieved highest Sales in Q3 FY21 and Q4 FY21 increasing its market presence. With high-capacity utilization, control on costs and reduced working capital, special focus on customer outreach and premium products offering, profitability improved significantly. Similarly, JK Tyre subsidiaries – Cavendish Industries and JK Tornel also added to substantial overall improvement in the profitability of the Company.”
Dr. Singhania further added, “JK Tyre is fully geared to face challenges emanating from rising raw material prices and prevailing lockdowns under second wave of novel virus. Despite these headwinds, we expect to continue capturing opportunities that are arising in this new environment in India and abroad.”