JK Tyre shares hit 52-week high after strong Q3 earnings

Updated : January 22, 2021 11:35 AM IST

Consolidated revenue from operations during Q3FY21 increased 25.88 percent to Rs 2,769.28 crore from Rs 2,199.80 crore, YoY.

The share price of JK Tyre and Industries rallied over 15 percent to hit its 52-week high of Rs 133.40 apiece on the BSE after the company reported a sharp rise in consolidated net profit at Rs 230.46 crore in the third quarter of fiscal 2021 driven by robust sales and favourable foreign exchange fluctuations. The company’s profit in the year-ago period was Rs 10.27 crore.

Consolidated revenue from operations during Q3FY21 increased 25.88 percent to Rs 2,769.28 crore from Rs 2,199.80 crore, YoY.

“For the quarter, exceptional items include favourable foreign exchange fluctuation of Rs 40.18 crore,” the company said in a regulatory filing.

Operating performance during the quarter improved as EBITDA jumped to Rs 500.4 crore from Rs 244.2 crore, while EBITDA margin expanded to 18.07 pecent versus 11.10 percent, YoY. India business margins improved to 15.2 percent from 8.1 percent.

“JK Tyre has reported exceptional results and complete recovery seen in Q3FY21 after the hit in H1FY21 due to Covid. These results are above consensus estimates. We also need to keep in mind that the base quarter performance was not good for the company and some effect of pent up demand also. We have a positive outlook for the company,” said Yash Gupta Equity Research Associate, Angel Broking.

At 10:55 am, the shares of JK Tyre and Industries were trading 13.24 percent higher at Rs 130.90 on the BSE as compared to a 0.30 percent loss in the benchmark Sensex.

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