NEW DELHI: Shares of JK Tyre and Industries on Thursday gained over 9 per cent after the company reported an increase in revenue from operations in the quarter ended September.
The stock jumped 8.91 per cent to Rs 66 on the BSE. On the NSE, it gained 9.16 per cent to Rs 66.10.
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 decline 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.