JK Tyre Q3 net surges over two-fold to Rs 27 cr

JK Tyre & Industries Thursday posted over two-fold increase in its consolidated net profit to Rs 26.89 crore for the third quarter ended December 31.

The company had reported a net profit of Rs 11.32 crore for the October-December period of 2017-18.

Revenue from operations rose to Rs 2,730.77 crore as compared to Rs 2,123.24 crore in the same period previous fiscal, JK Tyre & Industries said in a regulatory filing.

Commenting on the performance, JK Tyre Chairman & Managing Director Raghupati Singhania said volumes have increased across segments, helping the company achieve robust growth in sales.

He, however, added that increase in input costs especially petro based raw materials has impacted margins in the current quarter.

The expansion of truck/bus radial capacity at Cavendish, a subsidiary of JK Tyre, is near completion, Singhania said.

"Keeping in view the rising demand for company's truck/bus radials, a further expansion at the same facility has been taken up to further increase the capacity by 20 per cent," he added.

Singhania said the company has planned a preferential allotment of Rs 200 crore to the promoter group.

"This will go a long way in augmenting the long term resources of the company apart from improving the leveraging," he added.

JK Tyre shares Thursday settled 2.15 per cent up at Rs 88 a piece on the BSE.