JK Tyre & Industries Ltd has recorded a significant increase in sales in the last quarter. A gross sales turn over of Rs.1588 Crores for the Q1 has been recorded by the Indian Global Tyre Manufacturer. Operating profit for the current quarter was about Rs.129 Crores which was more than double the amount seen in the corresponding quarter last year.
Profit before tax also recorded a marked increase with figures of Rs. 36 Crores as compared to Rs. 3 Crores seen last year. The Chennai plant of the company has a capacity of producing 25 lac car radials and 4 lac truck and bus radials. This influx will help strengthen JK Tyre’s radial leadership locally as also globally.
According to Dr. Raghupati Singhania, Vice Chairman & Managing Director, JK Tyre & Industries Ltd, the company has seen a lot of growth due to utilization of specific marketing techniques and maintaining focus on market segment as also launching of new products coupled with cost compression techniques. The company has enhanced the production of its fast growing TBR and PCR lines and hopes to cater to market needs effectively seeing the demand for its tires in many segments.
Read the press release below for more information.
JK Tyre Operating Profit and PBT Jumps up
Kolkata / New Delhi, July 30, 2012: JK Tyre & Industries Ltd., the Indian Global Tyre Manufacturer of well known brands ‘JK Tyre’, Vikrant & Tornel, has reported a Gross Sales Turnover of Rs.1588 Crores for the Q1. JK Tyre reported a surge in its Operating Profit for the Qtr at Rs.129 Crores, which more than doubled that of corresponding Qtr of last year and Profit before Tax for the Qtr was Rs.36 Crores compared to Rs.3 Crores for the corresponding Qtr.
Commenting on the results, Dr. Raghupati Singhania, Vice Chairman & Managing Director, JK Tyre & Industries Ltd., said, “The quarter has seen a significant growth compared to last year. There has been a considerable improvement in profitability due to various steps such as enhancing our focus on higher realization market segments and launching many new products apart from several cost compression measures.”
He further added, “The stabilization of input prices to some extent helped achieve better results. Also, the company made entry into new OEMs and enhanced the production of fast growing TBR and PCR lines. We are optimistic about clocking good volumes on the back of strong demand for our tyres across segments and capacity expansions.”
The new green Chennai plant went on stream early this year. The plant with a capacity of 25 lac car radials and 4 lac Truck/Bus radial tyres per annum will strengthen JK Tyre’s radial leadership. The coming quarter shall have the benefit of production from this new Facility. The Facility will cater to both domestic and export markets.