The share price of JK Tyre & Industries surged 9 percent on Thursday after the company reported a strong operational performance in the September quarter. The stock rose as much as 8.9 percent to Rs 66 per share on BSE.

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The company’s revenue from operations increased 5.5 percent YoY to Rs 2,274.84 crore as compared with Rs 2,154.95 crore in the year-ago period.

However, it reported a 34.59 percent decline in its consolidated net profit at Rs 109.68 crore in Q2 versus a net profit of Rs 167.7 crore in the year-ago period.

The sentiment was also lifted as margins hit a four-year high of 15.6 percent in the quarter under review. The EBITDA also rose 21 percent YoY to Rs 366.69 crore because of the overall improvement in sales and cost-cutting measures.

“The company achieved higher sales on the back of economic recovery, more so in the automotive sector, which has taken place during the quarter. The company was well-positioned to take benefit of this emerging opportunity, and as a matter of fact, it could achieve healthy sales in the replacement market, doing better than the industry,” JK Tyre Chairman and Managing Director Raghupati Singhania said in a statement.

Singhania added that the profitability during the quarter improved significantly due to aggressive cost-cutting, more particularly fixed costs. The company could achieve savings in interest costs due to its ability to reduce its working capital requirements, it said.