JK Tyre Q1 net at Rs 100 cr

By: |
New Delhi | August 9, 2016 8:30 PM

JK Tyre & Industries today reported a consolidated net profit of Rs 100.26 crore for the first quarter ended June 30.

jk tyreStock of JK Tyre & Industries ended the day 0.47 per cent lower at Rs 105.10 on BSE. (PTI)

JK Tyre & Industries today reported a consolidated net profit of Rs 100.26 crore for the first quarter ended June 30.

The company had posted consolidated net profit of Rs 117.07 crore in the same period last fiscal, JK Tyre & Industries said in a BSE filing.

Net sales during the period under review stood at Rs 1,703.86 crore as against Rs 1,749.11 crore in the year-ago period. Since the financial results also include that of Cavendish Industries Ltd, which the company had acquired in middle of April, the figures are not comparable, it added.

JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said the company continued to make deeper inroads in the Indian market with higher sales volumes of both Truck/Bus radials and passenger radials.

“Monsoons have had a good start and it is expected to be above normal. This augurs well for tyre industry, particularly in agriculture sector apart from revival of rural demand,” he added.

After the acquisition of Cavendish Industries in April, its operations were restarted around mid-May 2016, Singhania said.

“This is a strategic acquisition as it has helped us acquire the readymade truck/bus radial capacity, a critical area for growth, where JK Tyre enjoys the Leadership position in the market place,” he added.

Furthermore, it is significant for the company, as it has entered the 2-3 wheeler segment, a high growth area, where JK Tyre is expecting to be a formidable player, he said.

Expressing concern over dumping of cheap tyres from China, Singhania said, “It is indeed a matter of great concern that Chinese tyres continue to flood Indian market, more particularly, in the Truck/Bus radial (TBR) segment which is causing great injury to the Indian tyre industry.”

Stating that the domestic players have made significant investment for creating TBR capacity in the last few years, he said the industry has “made several representations to the government to take urgent measures to arrest indiscriminate dumping of these cheap Chinese tyres in India, and expects an early action”.

Stock of JK Tyre & Industries ended the day 0.47 per cent lower at Rs 105.10 on BSE.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Digital economy: Platforms are pervasive
2Styx Neo smartwatch: Health assistant on your wrist
3Cybersecurity: Ransomware – to pay or not to pay?