The Coronavirus crisis has not only disturbed the pace of the auto industry but also of its ancillaries. One of the biggest Tyre manufacturer of India – JK Tyre & Industries has recorded a loss after tax of ₹ 202.15 crore in first of FY2021 as compared to a profit after tax (PAT) of ₹ 15.68 crore in the same quarter last year. The company’s revenue in the same period went down by 55.91 percent at 1,138.14 crore as compared to ₹ 2,581.47 crore in the same period a year ago. JK Tyre’s operating profit in the same quarter took a major hit, witnessing a steep decline of 98.54 percent at ₹ 3.58 crore as compared to ₹ 245.69 crore in the same quarter last year.
Commenting upon the results, Dr. Raghupati Singhania Chairman and Managing Director – JK Tyres said, “It was indeed one of the toughest Quarters ever. Economic activity, which came to a halt towards the end of the last quarter started slowly in mid-May. Our preparedness to meet replacement demand paid off well. As the lockdown was progressively eased we were able to cater to market demand especially in the commercial segment. In fact, the Company has achieved the highest ever sales in the Replacement market for its India Operations in June 20 which resulted in a growth of approx. 3 percent on YoY basis. OEMs volumes are still reeling from the impact of COVID-19, resulting in sluggish vehicle manufacturing”.
The company also said in a statement that sales of commercial and two-three wheeler tires did well during the quarter. Plants have started operating from early June, but in terms of sales, the overall demand continues to be subdued.