JK Tyres & Industries today posted 10.2 per cent increase in consolidated net profit at Rs 116.77 crore for the March quarter on the back of enhanced internal efficiencies and product mix.
The company had posted a net profit of Rs 105.96 crore in the January-March period a year ago.
However, net sales during the period under review was down 3.35 per cent to Rs 1,729.42 core as against Rs 1,789.49 crore in the same period a year ago.
For the year ended March 2016, JK Tyres & Industries consolidated net profit was up 40.69 per cent to Rs 463.80 crore as against a net profit of Rs 329.66 crore last fiscal.
Its consolidated net sales for financial year 2015-16 was down 6.13 per cent to Rs 6,877.98 crore as against Rs 7,327.85 crore a year ago.
“We had a record profit for the 2015-16 fiscal. It was on the back of internal efficiencies achieved during the fiscal, better product mix which we we have been able to put in place,” JK Tyre & Industries CMD Raghupati Singhania told reporters here.
On outlook for the current fiscal, he said: “With two incremental capacities in place — one in Chennai where we completed the Rs 1,430 crore expansion and the acquisition of Cavendish — we are well placed for growth in our topline as well as bottomline this fiscal.”
The company completed the expansion of its Chennai plant last fiscal at an outlay of Rs 1,430 crore. The company has also started production at Laksar (Haridwar) facility which it acquired for Rs 2,195 crore.
“We have started production at the plant and dispatches of two and three wheeler tyres to the replacement market have already begun. We are in talks with OEMs and action on that side will begin in couple of weeks,” Singhania said.
The company forayed into the two and three wheeler tyres with the acquisition of Cavendish Industries, a Kesoram Industries unit.
When asked if the company would look at optimising workforce at the plant, he added: “We think it requires pruning. Let it settle down then we will hava a look at it.”
The company now has 12 plants, nine of which are located in India. The total production capacity, including JK Tornel – the company’s Mexico-based subsidiary, now stands at 350 lakh tyres per annum.
When asked about the capex for the current fiscal, Singhania said: “We have earmarked Rs 160 crore for the current fiscal. It would be utilised in our existing nine plants in the country.”
The company’s board, which met today, recommended a dividend of Rs 2.50 per share of Rs 2 each (125 per cent) for the financial year ended March 31, 2016.
Shares of JK Tyres & Industries today closed 1.57 per cent up at Rs 84.05 apiece on BSE.