JK Tyre & Industries Ltd. continues to take measured steps to attain sustainable growth and improved profitability. The company is claimed to have well-negotiated the headwinds faced by the tyre industry as a whole in the quarter and the year ended March 31, 2020, and will continue to tread carefully. Averred Dr Raghupati Singhania Chairman and Managing Director, JK Tyre & Industries Ltd., “The tyre industry have faced a downturn prior to the current pandemic, which further aggravated the situation posing unprecedented challenges. As a consequence, both the commercial vehicle and the passenger vehicle segments have been severely impacted. Despite this, the company has posted higher sales in the passenger car and two and three-wheeler segments.” Added Dr Singhania that the company with a renewed focus was also able to register a 37 per cent growth on the exports front.
Financial snapshot FY2020
The company has evaluated and factored in, to the extent possible, the likely impact that may result from the Covid-19 pandemic known to have caused serious disruptions on the global economic and business environment. As per the consolidated results for the quarter and the year ending March 31, 2020, the net operating revenue of the company stood at Rs.1803.09 crores in Q42020 and Rs.8,753 crores in FY2020 compared to Rs.2715.95 crores in the same quarter the previous year (March 31, 2019) and the annual revenue of Rs.10367.76 crores (FY2019). This included segment revenue from India at Rs.1634.75 crores for Q42020 and Rs.Rs.7649.11 crores for FY2020. Mexico contributed Rs.199.50 crores for Q42020 and 1191.07 crores for FY2020. Notably, inventories of furnished goods, work-in-progress and stock-in-trade for Q42020 was a negative (156.06) compared to 3262, the quarter a year ago. For the entire year, the unsold inventory was proportionately lower at negative (14.46). This was also significantly lower than the negative (294.90) levels for FY2019.
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