JK Tyre posts marginal rise in Q1 net profit at Rs 55.44 cr

JK Tyre & Industries today posted a marginal increase in its consolidated net profit at Rs 55.44 crore for the first quarter ended June 30, 2014.

The company had posted a net profit of Rs 55.26 crore during the same period in the previous fiscal.

Net sales of the company declined to Rs 1,853.92 crore for the first quarter, as against Rs 1,866.94 crore during the same period of previous fiscal, JK Tyre & Industries Ltd said in a statement.

"In the face of economic challenges which have continued for most of the first quarter, the company continues to perform well maintaining its leadership in truck/bus radials with highest market share in India," JK Tyre & Industries Chairman & Managing Director Raghupati Singhania said.

First signals of economic turnaround are in sight with car industry registering a growth in the last two months, he added.

"Commercial vehicles are also showing signs of improvement. This augurs well for the tyre industry and coming quarters should see improved performance in terms of volumes and profitability," Singhania said.

He further added that the company's capacity expansion at an outlay of Rs 1,430 crore at its Chennai tyre plant is also progressing as per schedule.

JK Tyre shares today closed at Rs 296.40 apiece on the BSE, up 0.92 per cent from their previous close.