JK Tyre Q4 net profit rises over two-fold to Rs 106 cr

JK Tyre & Industries today reported over two-fold rise in consolidated net profit at Rs 106 crore for the fourth quarter ended March 31 on product launches across categories and improvement in operational efficiencies.
The company, which aspires to be among the top 15 tyre makers globally by 2020, had posted a net profit of Rs 44.95 crore during the same period of previous fiscal.
Net sales of the company, however, declined to Rs 1,789.49 crore for the fourth quarter, as against Rs 1,895.62 crore in the same period of previous fiscal.
"We launched nine products last year across various categories including trucks, buses and passenger cars. Also, there has been all round improvement in operational efficiencies including efforts on power conversation have helped us perform better," JK Tyre & Industries CMD Raghupati Singhania told reporters here.

Softening of commodity prices, especially rubber, also helped the company perform better during Q4, he added.
For the year ended March 31, the company posted a net profit of Rs 329.66 crore, compared to Rs 263.02 crore in the same period of previous fiscal.

Net sales of the company rose to Rs 7,327.85 crore for the year ended March 31, compared to Rs 7,599.06 crore in the 2013-14 fiscal.
When asked about the company's long term term growth strategy, Singhania said: "We aspire to be in top 10-12 companies globally by 2020. We are currently at 22nd position."
The company would take both organic and inorganic routes to expand its presence across the world, he added.

On the company's ongoing capacity expansion projects, Singhania said the Rs 1,430 crore expansion of Chennai plant would be completed by the end of the year.
After completion, the plant's installed capacity for truck and bus radials would go up by 55 per cent to 22.65 lakh tyres per annum and that of car radials would expand by 28 per cent to 98 lakh tyres per annum, he added.
"Besides, the USD 25 million expansion project at Tornel (the company's Mexican subsidiary) has been completed and the company shall have the benefit of increased production in coming months," he added.

Commenting on the market, Singhania said: "Increase in car sales is an extremely encouraging sign and we hope that commercial vehicle segment also sees some improvement."
JK Tyre & Industries shares today ended 3.61 per cent up at Rs 120.70 apiece on the BSE.