JK Tyre net up two fold at Rs 41 cr

JK Tyre & Industries today reported a two-fold growth in net profit at Rs 40.75 for the quarter ended June 30, 2009.

The tyre manufacturer had a net profit of Rs 20.24 crore in the June quarter of the previous fiscal, JK Tyre said in a statement.

The net sales rose 5.73 per cent to Rs 897.67 crore at the end of the June quarter from Rs 849.06 crore in the same period last fiscal.

The board has declared a dividend of 27 per cent on equity shares with face value of Rs 10 each for the financial year (18 months) ended March 31, 2009.

"JK Tyre has recorded an excellent performance in Q1 of the current year on account of all round cost reduction, better operating efficiencies, productivity and richer product mix," JK Tyre Vice-Chairman and MD Raghupati Singhania said.

"Radialisation of commercial tyres segment is catching up at a faster space. The growth momentum shall continue in the coming months with benefits available from recent completion of Truck Radial Expansion Project of doubling the capacity to eight lakh tyres per annum involving a capital expenditure of Rs 315 crore," he added.

JK Tyre has entered into a long-term supply agreement with Bharat Earth Movers for supply of off-the-road, or OTR tyres and has already delivered the fast batch of ultra-large sized tyres to them ahead of its schedule.