JK Tyre & Industries today reported 55.53 percent jump in consolidated net profit at Rs 91.81 crore for the third quarter ended December 31, 2014, on account of company's focus on radial tyres.
JK Tyre & Industries today reported 55.53 per cent jump in consolidated net profit at Rs 91.81 crore for the third quarter ended December 31, 2014, on account of company's focus on radial tyres.
The company had reported consolidated net profit of Rs 59.03 crore in the October-December quarter of last fiscal. JK Tyre's consolidated net sales during the quarter under review also rose to Rs 1,825.76 crore, up 7.18 percent from Rs 1,703.42 crore in the same period last fiscal, the company said in a statement.
"Our focus on truck and bus radial tyres is helping us maintain growth. We are also focusing on new products and that helped us too in the quarter," JK Tyre & Industries Ltd President & Director Arun K Bajoria told reporters here. He added that the company is currently focusing on the radial segment.
"Currently 55 percent of the sales come from bias tyres and around 45 per cent from radial tyres. We believe in the next three years, sales of radial tyres would go up to 65 percent and it would add to our profitability," Bajoria said.
When asked if the company is planning any investment during the current year, Bajoria said: "We will complete second phase of expansion in our Chennai plant at an investment of Rs 1,430 crore by June.
So we will first focus on starting the full scale production. We may review our investment plans towards the end of the year." After completion, the company's Chennai plant would have total production capacity of 45 lakh passenger vehicle radial tyres per annum. It would also be able to produce 12 lakh truck and bus radial tyres per annum from the plant.
Commenting on the results, JK Tyre and Industries CMD Raghupati Singhania said the company's emphasis on truck and bus radials continues to help it achieve higher growth and maintain leadership position in truck/bus radials.
"Continuous efforts to develop new products to cater to the changing customer needs, and widening of sales network has helped deeper market penetration," he added. Shares of the company settled at Rs 105.05 apiece, down 3.62 per cent from previous close, on the BSE.