JK Tyre and Industries announces no capital expenditure of this year amid the uncertainty of the market. JK Tyre is among one of the leading tyre manufacturer companies in India. Last year, JK Tyre had incurred a CapEx of Rs 374 crore, which had declined from the Rs 595 crore spent in FY 2019.
Anshuman Singhania, Managing Director, JK Tyre & Industries, said: “There is no CapEx right now which we are planning. We are watching the market very carefully and we will take a call when and whenever the market improves”.
While Arun Bajoria, the company’s Director and President (international operations) said, “For the time being we have sufficient capacity to cater to demand. So, we are not planning any CapEx till the time the uncertainty over the pandemic gets over.”
However, the company posted a year-on-year decline of 34.59 percent in the net profit to Rs. 109.68 crores for the quarter ended in September 2020. The company had reported a loss of Rs. 204.17 crore due to the COVID-19 outbreak, but showed some positive signs by registering strong growth in the April-June quarter.
“JK Tyre achieved higher sales on the back of economic recovery, more so in the automotive sector, which has taken place during the quarter,” said Raghupati Singhania, CMD.
“The company was well-positioned to take benefit of this emerging opportunity and could achieve healthy sales in the replacement market. The renewed thrust on exports resulted in higher export sales of ₹337 crores during the quarter,” he added
TOPICS:
Market