BackJK Tyre Q3 profit up 56% at ₹92 crore
Firm says focus on truck and bus radial tyres is helping maintain growth
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New Delhi: JK Tyre & Industries on Monday reported 55.53% jump in consolidated net profit at ₹ 91.81 crore for the third quarter ended 31 December 2014, on account of company’s focus on radial tyres.
The company had reported consolidated net profit of ₹ 59.03 crore in the October-December quarter of last fiscal. JK Tyre’s consolidated net sales during the quarter under review also rose to ₹ 1,825.76 crore, up 7.18% from ₹ 1,703.42 crore in the same period last fiscal, the company said in a statement.
“Our focus on truck and bus radial tyres is helping us maintain growth. We are also focusing on new products and that helped us too in the quarter," JK Tyre & Industries Ltd President & Director Arun K Bajoria told reporters. He added that the company is currently focusing on the radial segment.
“Currently 55% of the sales come from bias tyres and around 45% from radial tyres. We believe in the next three years, sales of radial tyres would go up to 65% and it would add to our profitability," Bajoria said.
When asked if the company is planning any investment during the current year, Bajoria said: “We will complete second phase of expansion in our Chennai plant at an investment of ₹ 1,430 crore by June. So we will first focus on starting the full scale production. We may review our investment plans towards the end of the year."
After completion, the company’s Chennai plant would have total production capacity of 4.5 million passenger vehicle radial tyres per annum. It would also be able to produce 1.2 million truck and bus radial tyres per annum from the plant.
Commenting on the results, JK Tyre and Industries CMD Raghupati Singhania said the company’s emphasis on truck and bus radials continues to help it achieve higher growth and maintain leadership position in truck/bus radials.
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