JK Tyres Sales & Profit Up
For the quarter ending March 31, 2007 JK Tyre & Industries Ltd posted a net profit of £2.64 million as compared to £435,460 in the corresponding previous quarter. Net sales for the period increased 19.48 per cent to £91.35 million from £76.45 million a year earlier. The company’s net profit during the first half of the current fiscal year stood at £1.68 million, compared with £439,000 during the first six months of 2005-06. Net sales rose 17.13 per cent to £194.73 million from the previous year’s total of £165.26.
At present JK Tyre is the undisputed leader of India’s truck and bus radial market with a market share of close to 80 per cent. The company’s light truck and passenger car radial market segments, while not reaching these levels, are still a healthy 25 and 24 per cent respectively. JK Tyre also enjoys a market share approaching 23 per cent in the nylon truck tyre segment.
Mr. Arun K. Bajoria, president of JK Tyre & Industries Ltd spoke of the company’s market activities with Indian publication the Hindu Business Line: “With heavy investment in infrastructure and accelerated economic activity, the road transport sector and tyre industry are the natural beneficiaries. And the benefits of the expansion of truck radial and passenger radial capacities completed last year are now being realised.”
He added that the company is seeking fresh export markets for its tyres. “At the moment, around 17 to 18 per cent of our revenue comes from the 70 countries that we export our products to. Though it is too early to say which markets we would like to enter, we are looking at expanding our export business,” Mr Bajoria said.
Mr. Bajoria believes the company will improve both its sales and profitability in the coming six months, and commented that, as the price of rubber has come down from around £1.45 to £1.15 per kilogram, there is no question of increasing prices in the near future.
“Even when the prices of raw materials increased, the entire burden was not passed on to the customers because of some internal measures. So, since the raw material costs have come down substantially, we do not see an immediate need in hiking the prices,” Mr Bajoria said.