JK Tyre profits rise 18% in July-September quarter
India’s JK Tyre & Industries Ltd has reported consolidated net profit of Rs 755.9 million (£7.8 million) for the three months to 30 September 2014, the second quarter of the company’s current financial year. This result represents a year-on-year increase of 18.1 per cent. The company achieved a consolidated turnover of Rs 18.7 billion (£193.5 million), up 3.6 per cent from the second quarter of the previous financial year.
Commenting on the results, JK Tyre chairman and managing director Dr Raghupati Singhania said: “The company put up a good performance during the second quarter. Our emphasis on truck and bus radials continues to help us ward off slow growth in the overall automotive market. Our focus on [the] replacement market by expanding the width and depth of the distribution network, backed by introduction of high performing new products, has reaped good dividends. JK Tyre has maintained its leadership in truck/bus radials with the highest market share in India.
“We expect that the initiatives taken by the new government to accelerate economic activities, especially the manufacturing sector, will positively impact the automotive industry,” Singhania added. “The thrust on building infrastructure, particularly roads and mining, will further boost the tyre demand.”
The chairman and managing director noted that JK Tyres’ expansion at its Chennai plan in India is “moving ahead at full steam as per schedule” – this Rs 14.3 billion (£148.0 million) project will add both TBR and PCR capacity at the facility. And as for the JK Tornel operation in Mexico, Singhania said it “continues to perform well and has added to both the top and bottom line of JK Tyre.” He added: “Its expansion in the PCR category is progressing well and the increased output of PCR tyres is expected from early next year onwards as planned.”
Full financial information for JK Tyre & Industries can be found in our company profiles & reports section.