JK Tyre and Industries second quarter net up 38 percent

JK Tyre and Industries Friday reported an increase of 38 percent in its consolidated net profit of Rs.76 crore for the second quarter of the current fiscal from Rs.55 crore in the previous quarter.

The company achieved a consolidated turnover of Rs.2,043 crore. The company's net profit grew at 18.57 at Rs.76 crore in the second quarter from Rs.64 crore reported in the corresponding period of last fiscal.

On a standalone basis, JK Tyre reported a turnover of Rs.1,702 crore with an operating profit at Rs.190 crore, which is an increase by 14 percent over the first quarter.

The company's net profit on a standalone basis was Rs.58.20 crore, representing a growth of 65.20 percent from Rs.35.23 crore earned in the corresponding period of last fiscal.

"Our emphasis on truck and bus radials continues to help us ward off slow growth in the overall automotive market. Our focus on replacement market by expanding the width and depth of the distribution network, backed by introduction of high performing new products has reaped good dividends," Raghupati Singhania, chairman and managing, JK Tyre and Industries.

Singhania added that the company expects the initiatives taken by the new government to accelerate economic activities, especially the manufacturing sector will positively impact the automotive industry.

The company has a expansion outlay of Rs.1,430 crore to add capacity in the TBR and PCR categories at its Chennai tyre plant.