JK Tyre spikes after reporting bottomline turnaround

The company managed to register a turnaround with a PAT of Rs. 64.2 crore in the first quarter of fiscal year 2019 from net loss of Rs. 117.2 crore in Q1FY17.

JK Tyre & Industries consolidated revenue for the quarter came in at Rs. 2,439.52 crore, registering 26.3 per cent yoy increase. This was primarily driven by significant growth in India business (26 per cent yoy growth) which contribute almost 86 per cent to overall revenue.

Company’s EBITDA for the quarter stood at Rs. 325 crore as against loss of Rs. 1.1 crore in the corresponding quarter of the last fiscal.

Notably, the company managed to turnaround its bottom-line to Rs. 64.2 crore in first quarter of fiscal year 2019 from net loss of Rs. 117.2 crore in corresponding quarter of last year.

With this turnaround in bottom-line, in Thursday’s trading session the stock of JK tyre opened gap at Rs. 129 per share, up by more than 3 per cent from previous close of Rs. 124.7. However, later the stock cooled downs and at 11:40 hours, the stock was trading at Rs. 125.4 per share, up by 0.6 per cent.