Share of JK Tyre and Industries rose 6 per cent to hit an intraday high of Rs 131.25 after the company reported a consolidated net profit of Rs 189 crore for the quarter ended March 31 against a net loss of Rs 47.20 crore in Q4 FY20.
The stock has gained 157 per cent in one year and risen 68 per cent since the beginning of this year. JK Tyre's share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. Market cap of the firm rose to Rs 3,102.51 crore.
Revenue from operations grew 63 per cent to Rs 2,927.28 crore in the last quarter against Rs 1,792.56 crore a year ago.
Total expenses stood at Rs 2,673.58 crore for the quarter ended March 31, up 46.5 per cent as against Rs 1,824.35 crore in the year-ago period.
For the fiscal year 2021, net profit stood at Rs 319.34 crore compared to Rs 150.76 in FY20. Revenue from operations grew 4.5 per cent to Rs 9,145.27 crore from Rs 8,753.29 crore in the previous year.
"COVID-19 pandemic has caused serious disruptions on the global economic and business environment. Government of India declared lockdown on March 24, 2020, which has impacted the business activities of the Company. Consequent to this, upon restrictions being eased, the production resumed at all plants in stages considering necessary statutory approvals and precautions," the company said.
"Resumption of operations and improved business environment from 2nd quarter onwards resulted in Company attaining healthy sales and profitability," it added.
"The economy started opening up gradually from mid-May. As a result of several initiatives taken JK Tyre recovered fast and achieved highest Sales in Q3FY21 & Q4FY21 increasing its market presence," said Dr. Raghupati Singhania, Chairman, and Managing Director.
He further added that with high capacity utilization, control on costs and reduced working capital, special focus on customer outreach, and premium products offering, profitability improved significantly. Similarly, JK Tyre subsidiaries - Cavendish Industries and JK Tornel also added to the substantial overall improvement in the profitability of the company.
"Despite these headwinds, the company expects to continue capturing opportunities that are arising in this new environment in India and abroad," he noted.
The board has recommended a dividend of Rs 2.00 per equity share i.e. 100 per cent for the financial year ended March 31, 2021.