JK Tyre's first quarter net profit at Rs.55 crore

JK Tyre and Industries Wednesday reported a net profit of Rs.55.26 crore for the first quarter of the current fiscal from Rs.16.44 crore in the corresponding quarter of 2012-13.

According to the company, it was able to achieve the massive increase of 236.87 percent in net profit for the quarter under review, due to consolidating in truck and bus radial segment, enlarging customer base and entering new markets like Mexico.

"Automotive industry is facing one of its toughest phases in a decade and has affected all OEMs (original equipment manufacturer) - car and commercial vehicles," it said.

"JK Tyre has been able to ride over these extremely challenging times with its leadership in truck and bus radials with highest market share in India."

The company which started its maiden Mexican operations expressed concern over rupee deprecation as it will lead to a cascading effect on input costs. However, it added that exports from the Indian base has been extremely favourable.

The company's operating profit increased by 48 percent in the quarter under review and stood at Rs.238 crore.