JK Tyre Q2 Net down 5% at Rs 64 crore

Company reported net profit of Rs 67.38 crore in the July-September quarter of last fiscal

JK Tyre and Industries today reported a 5% drop in consolidated net profit at Rs 64 crore for its second quarter ended September 30.

The company had reported net profit of Rs 67.38 crore in the July-September quarter of last fiscal.

JK Tyre's net sales during the quarter under review stood at Rs 1,799.01 crore compared to Rs 1,729.39 crore in the same period last fiscal, the company said in a BSE filing.

Commenting on performance, JK Tyre Chairman and Managing Director Raghupati Singhania said: "The long term prospects of the Indian economy and particularly automotive industry remain strong. It is expected that despite current slowdown, demand and growth are likely to bounce back in the next couple of quarters."

The company today also announced capex of Rs 1,430 crore at its Chennai plant for both truck/bus and passenger car radials.

"Keeping in view the long term demand growth, is undertaking expansion of its Chennai facility for both truck/bus and passenger car radials," Singhania said.

For the first half of 2013-14 fiscal, JK Tyre reported net profit of Rs 118.04 crore as against net profit of Rs 82.15 crore in the year-ago period.

The company's scrip closed at Rs 111.80 at the end of day's trade, up 0.04% from its previous close, on the BSE.