JK Tyre and Industries has closed financial year 2019-10 with consolidated net profit of Rs 141 crore, registering a year-on-year decline of 17.15 per cent. The tyre industry major had posted net profit of Rs 170 crore in financial year 2018-19, it said in a filing to the Bombay Stock Exchange.
The total revenue of the company declined by 16.25 per cent to Rs 8,753 crore in FY20 as compared to Rs 10,452 crore in FY20. The operating profit for the year fell 15 per cent YoY to Rs 1,016 crore in FY20.
For the fourth quarter ended March 31, 2020 (Q4 FY20), JK Tyre and Industries reported a consolidated net loss of Rs 52.78 crore as against net profit of Rs 33.66 crore for January-March period of 2018-19. Revenue from operations decreased to Rs 1,794.76 crore for the fourth quarter as against Rs 2,703.71 crore in the same period of 2018-19, JK Tyre and Industries said in the regulatory filing. The company's operating profit fell by more than 20 per cent to Rs 215 crore in Q4 FY20, compared to Rs 271 crore in the same quarter last year.
Commenting on earnings, Raghupati Singhania, Chairman and Managing Director of the company, said, "Tyre industry has been facing a downturn before the current pandemic, which further aggravated the situation posing unprecedented challenges. As a consequence, both the commercial and passenger segments have been severely impacted. Despite this, the company posted higher sales in passenger car and 2-3 wheeler segments. In addition, exports registered a growth of 37 per cent with renewed focus".
JK Tyre's board recommended a dividend of Rs 0.70 per equity share of Rs 2 each (35 per cent) for the financial year ended March 31, 2020.
Reacting to earnings, shares of JK Tyre and Industries closed Tuesday's trade lower by 4.08 per cent at Rs 61.15 on the BSE. During the day, it plunged 6.66 per cent to Rs 59.50.
By Chitranjan Kumar