October 25, 2013: JK Tyre has registered an operating profit of Rs 215 crore in Q2 FY 2013-14, an increase of 46 percent over the corresponding quarter last year. For the quarter ended September 30, 2013, the tyre maker reported a consolidated turnover of Rs1,956 crore. Profit before tax was Rs107 crore, up 78 percent compared to Rs 60 crore a year ago.
The company management has approved a major expansion project involving capital expenditure of Rs1,430 crore at its Chennai plant for truck/bus and passenger car radial tyres. Expansion of passenger car radial capacity would augment production capacity by 25 percent which is currently under way at JK Tornel.
Commenting on the results, chairman and MD Dr Raghupati Singhania said: “The long term prospects of the Indian economy and particularly the automotive industry remain strong. It is expected that despite the current slowdown, demand and growth are likely to bounce back in the next couple of quarters. ”
The second quarter of 2013-14 saw JK Tyre achieve its highest ever export tally of nearly Rs 450 crore. The company says the recent rupee depreciation continues to be a major concern with its cascading effect on input costs.
SHOBHA MATHUR