Cavendish Industries posts Rs 47 cr profit in Dec qtr

JK Tyres subsidiary Cavendish Industries Ltd CIL on Wednesday reported a profit of Rs 46.87 crore in the quarter ended December 2020 on the back of higher capacity utilisation and better sales. The company had reported a loss of Rs 4.51 crore in Q3 FY20, JK Tyre Industries said in a statement.

JK Tyre's subsidiary Cavendish Industries Ltd (CIL) on Wednesday reported a profit of Rs 46.87 crore in the quarter ended December 2020 on the back of higher capacity utilisation and better sales. The company had reported a loss of Rs 4.51 crore in Q3 FY20, JK Tyre & Industries said in a statement. Sales during the quarter under review grew 30 per cent to Rs 788.37 crore as against Rs 607.51 crore in the December quarter of the last fiscal, it said. CIL is a subsidiary of JK Tyre with majority shareholdings through direct holdings and the balance through its subsidiaries and associates, as per the statement. ''Increased volumes in truck tyres both radial and bias, LCV and Agricultural tyres have contributed to higher Sales. Cavendish operated all its three plants at 95 per cent capacity utilisation and also achieved best ever operating efficiencies on several parameters during the quarter,'' said JK Tyre's chairman Raghupati Singhania. ''The demand recovery is quite robust across segments. Larger commercial tyres are also moving well with replacement demand clocking 30 per cent growth and OEMs offtake slowly coming back. Cavendish looks forward to sustained improvement in sales and profitability in the coming period,'' he added. Acquired by JK Tyre in 2016, Cavendish operates three tyre plants located at Laksar (Haridwar). The company manufactures a range of tyres, tubes and flaps. JK Tyre has 12 tyre plants (including three of Cavendish) with nine of them 9 tyre plants in the country and remaining three in Mexico.