JK Tyre net profit rises over three times

Tyre major JK Tyre Wednesday reported over 3.67 times jump in its consolidated net profit for the first quarter of the current fiscal at Rs.54 crore from Rs.14.7 crore in the same period of 2012-13.

Net sales of the company increased during the April-June period by over three percent to Rs.1,867 crore from Rs.1,806 crore in the corresponding period last fiscal.

Company director Arun Bajoria attributed the jump to better performance by its Mexico-based subsidiary Tornel as well as an increase in its consumer base.

The company acquired Tornel in 2008 and would be increasing its capacity by 25 percent by the end of 2014.

"For the first time, Tornel has entered the original equipment manufacturer market. We would be raising our capacity at Mexico from the current 6.6 million radials by 25 percent by the end of 2014 at an investment of Rs.135 crore," said Bajoria.

Regarding its expansion plans in India, Bajoria said the company would increase its capacity at Chennai from 25 lakh to 30 lakh passenger car tyres within six months.