JK Tyre net sales up by 18% to Rs 849cr

JK Tyre & Industries Ltd.  (JK Tyre), Industry leader and manufacturer of well known ‘JK TYRE’ and ‘VIKRANT’ brands, today announced its un-audited financial results for the 3rd Quarter ended 30^th June, 2008 with Net Sales at Rs 849 crores recording an increase of 18% and PBT of Rs 34 crores.

Highlights of Quarter ended 30^th June 2008

Ø       Gross Sales at Rs.955 crores – up by 17%

Ø       EBITDA of Rs.78 crores 

Ø       PBT at Rs.34 crores

Ø       Earning per share (EPS) at Rs.6.57 

Commenting upon, Dr Raghupati Singhania, Vice Chairman & Managing Director said, “JK Tyre continues to sustain its pace of growth with both sales and profits improving.  With acquisition of Tornel Group and implementation of expansion projects, by year end growth will get further accelerated”.

For the 9-month period ended June 30, 2008, JK Tyre has achieved Turnover of Rs.2719 crores. Profit Before Tax up at Rs.106 crores has registered an increase of 61%. Profit After Tax for the 9-month period aggregating Rs.65 crores.

The Company has recently announced completion of the acquisition of 100% shareholding in Tornel, Mexico.  Strategic location of Mexico offers JK Tyres free access to NAFTA & other trade blocks and emerging economies of Southern America. The combined capacity after this acquisition has become 940 MTs/day making JK Tyre the largest four wheeler tyres company in the country.

The expansion of capacities in Truck/Bus radials, OTR and manufacture of Specialty Tyres, an outlay of Rs.480 crores is well under implementation.  To part finance the expansions, the Rights Issue of one Equity Share for 3 shares is opening on 4^th August 2008.  The Company has already tied up all the finances for these expansion projects.

The capacity expansion and Tornel acquisition will lead further growth and improvement in the profitability in the times ahead.

Sourced From: Vaishnavi Corporate Communications Pvt Ltd