JK Tyre & Industries on Thursday zoomed by over 9% with an intraday high of Rs90.85 per piece on Sensex's early deals. Investors were upbeat in JK Tyre after the company announced that its subsidiary Cavendish Industries recorded a 30% growth in sales to Rs788cr for the quarter ending December 2020.
Cavendish's EBITDA was at Rs157cr increasing by 128%, while profit before tax stood at Rs92cr in the quarter.
Dr Raghupati Singhania, the Chairman stated "increased volumes in Truck tyres both Radial and Bias, LCV and Agricultural tyres have contributed to higher Sales. Cavendish, during the Qtr, operated all its 3 plants at 95Yo capacity utilization, and also achieved best-ever Operating efficiencies on several parameters."
He further mentioned "the demand recovery in the market is quite robust across segments. Larger commercial tyres are also moving well with replacement demand clocking 30% growth and OEMs offtake slowly coming back. cavendish looks forward to sustained improvement in Sales and Profitability in the coming period."
At around 1.07 pm, JK Tyre was trading at Rs89.05 per piece up 6.97% on Sensex.