Tornel operation gives JK Tyre quarter profit a boost
In its financial results for the March to June quarter – the first quarter of its current financial year – JK Tyre posted a net profit of Rs 540.4 million (£5.7 million), a year-on-year increase of 265.9 per cent. Quarter net sales came to Rs 18,669.4 (£196.0 million), 3.3 per cent higher than in the first quarter of 2012.
In a statement, president and director Arun Bajoria said this positive result was facilitated by the company’s Mexican subsidiary. “For the first time, Tornel has entered the original equipment manufacturer market,” he commented. “We would be raising our capacity at Mexico from the current 6.6 million radials by 25 per cent by the end of 2014 at an investment of Rs 135 crore (£14.2 million).”
The Tornel operation accounted for 21.2 per cent of total segment revenue and its Rs 590.4 million (£6.2 million) profit before finance costs, exceptional items and tax was 30.3 per cent of the total and up 114.8 per cent year-on-year. Profit before finance costs, exceptional items and tax for JK Tyre’s Indian operation rose 32.8 per cent year-on-year to Rs 1,360.8 million (£14.3 million).
Bajora also said it would increase passenger car tyre capacity at its Chennai plant in India by 500,000 units within half a year, giving the facility a total capacity of 3 million tyres a year.