JK TYRE & IND Announces Quarterly Results (2QFY21); Net Profit Down 35.4%

Fri, 23 Oct

JK TYRE & IND has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

JK TYRE & IND Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	21,550	11,308	22,748	101.2%	5.6%
Other income	Rs m	67	73	117	58.7%	73.6%
Turnover	Rs m	21,617	11,381	22,865	100.9%	5.8%
Expenses	Rs m	18,586	11,346	19,198	69.2%	3.3%
Gross profit	Rs m	2,461	-367	3,758		52.7%
Depreciation	Rs m	916	967	965	-0.2%	5.4%
Interest	Rs m	1,396	1,306	1,235	-5.4%	-11.5%
Profit before tax	Rs m	216	-2,566	1,674		673.9%
Tax	Rs m	-1,470	-544	585
Profit after tax	Rs m	1,686	-2,022	1,089		-35.4%
Gross profit margin	%	11.4	-3.2	16.5
Effective tax rate	%	-679.6	21.2	34.9
Net profit margin	%	7.8	-17.8	4.8

Year-on-Year Performance:

• The company's operating income during the quarter grew 5.6% on a year-on-year (YoY) basis. The expenses were up by 3.3% YoY during the same period.
• The company's operating profit increased by 52.7% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 16.5% in 2QFY21 as against 11.4% in 2QFY20.
• Depreciation charges increased by 5.4% and finance costs declined by 11.5% YoY, respectively.
• Other income increased by 73.6% YoY during the quarter.
• Net profit for the quarter declined by 35.4% YoY. Net profit margins during the quarter declined from 7.8% in 2QFY20 to 4.8% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 101.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 69.2% QoQ during the same period.
• The company's operating profit declined by 1124.7% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 16.5% in 2QFY21 as against 3.2% in 1QFY20.
• Net profit for the quarter increased by 153.9% QoQ, while net profit margins increased from -17.8% in 1QFY20 to 4.8% in 2QFY21.

To see how JK TYRE & IND has performed over the last eight quarters,please visit here.

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JK TYRE & IND Share Price Performance

Over the last one year, JK TYRE & IND share price has moved down from Rs 66.1 to Rs 65.4, registering a Loss of Rs 0.7 or around 1.1%.

Overall, the S&P BSE SENSEX is up 4.5% over the year.

Current Valuations

At the current price of Rs 65.4, the price to book value (P/BV) ratio of JK TYRE & IND stands at 0.8 times.