JK Tyres posts 24 percent higher net profit in Q1

Leading tyre manufacturer JK Tyre & Industries Ltd. (JKTIL) today announced its result for the first quarter of 2014-15. The manufacturer achieved a turnover of INR 2035 Crores, with an operating profit of INR 196 Crores and PAT of INR 54 Crores. This came on a consolidated basis as compared to INR 44 Crores in the previous quarter, posting a good 24 percent increment.

Commenting on the results, Dr Raghupati Singhania, Chairman & Managing Director said, “In the face of economic challenges which have continued for most of the first Qtr, the company continues to perform well maintaining its leadership in truck/bus radials with highest market share in India. First signals of economic turnaround are in sight with car industry registering a growth in the last 2 months. Commercial vehicles are also showing signs of improvement. This augurs well for the tyre industry and coming Qtrs should see improved performance in terms of volumes and profitability.”

According to him, JK Tornel, Mexico also performed well in this quarter and helped the manufacturer to achieve these results. Its expansion in the PCR category is really going well and the increased output of PCR tyres is most likely expected from next year onwards. The leading tyre maker's expansion at an outlay of INR 1430 Crores to add capacity in the TBR and PCR categories at Chennai Tyre Plant is also progressing as per schedule. And the company is hopeful for even better results in future.

JK Tyre & Industries Ltd., is the 19th largest manufacturer in the world and has global presence in 90 countries across six continents with nine plants in India and Mexico. With the commissioning of the Greenfield project in Chennai, the capacity across nine plants exceeds 20 million tyres per annum milestone in India and Mexico.