JK Tyre leads truck/bus radial segment with 34% market share
JK Tyre & Industries Ltd. Board of Directors last week approved the companyâ€™s Financial results for FY 14, recommending dividend of 50% on Equity Shares to be approved by the Shareholders at the Annual General Meeting later in 2014. JK Tyre reported 12% higher turnover of Rs.2081 Crores in Q4 (ending January – March 2014), while operating profit stood at Rs. 199 Crores and net profit for for Q4 FY 14 stood at Rs.45 Crores.
Consolidated Annual Financial Performance for FY 14 points to operating profit at Rs.890 Crores – up by 41%, consolidated turnover including JK Tornel stood at Rs. 8279 crores, up by 9%, PBT at Rs.374 Crores over Rs.264 Crores, up by 42%, and net profit at Rs.263 Crores, up 29% over the previous year.
Dr Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries Ltd. said, â€śthe Company has performed well, in the face of the challenges during the year 2013-14. Commercial vehicle production declined and even Passenger Cars recorded a negative growth, first time ever in the decade. This led to subdued demand for tyres. To combat the sluggish market conditions, JK Tyre undertook several strategic actions by renewing its thrust in the replacement market as also adding new OEMs. The Company widened its network of customer touch points which enabled it to deliver better service to its customers. Aggressive efforts resulted in export recording a 23% increase during the yearâ€ť.
Dr Singhania added, â€śJK Tyre continues its focus on innovation and introduced several new higher value added products both in the commercial as well as passenger tyre categories, which received enthusiastic customer responseâ€ť. â€śJK Tornel, Mexico continues to perform well which has added to the bottom line of JK Tyreâ€ť noted Dr Singhania.
JK Tyre expansion plans entail an outlay of Rs.1430 Crores, to add capacities in the TBR and PCR categories at Chennai tyre plant to be completed in phases by early 2016. Total exports (India and Mexico) stood at 1,605 Crores, up by 20%. JK Tyre continue as Truck/Bus Radial leaders with 34% market share.
JK Tyre introduced 7 new products in commercial category and 3 for passenger cars. JK Tyre also partnered with Tata Motors to host the first ever T1 Prima Truck Racing Championship earlier this year with all racing trucks fitted with specially made JK Truck Radial Racing tyres. The year also marks a decade of JK Tyre National Karting Championship. This weekend also marks the beginning of JK Tyre Volkswagen Polo R Cup 2014 Round One at Kari Motor Speedway in Coimbatore.