Corporate Results
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Tyres
JK Tyre Q3 net rises six fold
Our Bureau
New Delhi, July 30 JK Tyre and Industries Ltd has reported a more than six-fold jump in its net profit at Rs 20.19 crore for the third quarter ended June 30, compared to Rs 3.7 crore during the same quarter last fiscal.
The net sales were up 3.5 per cent to Rs 721.66 crore during the quarter against Rs 696.93 crore in the same quarter last fiscal.
“The performance is attributed to better realisation, strong growth in automobile sales, and ability to focus on cost reduction measures initiated by the company,” Mr Raghupati Singhania, Vice Chairman and Managing Director, JKTI, said.
Capacity focus
The company would be investing Rs 360 crore over the next one year to increase its truck and bus radials and speciality tyres manufacturing capacity. Post-expansion, it would be able to manufacture nearly 8 lakh truck and bus radials per annum from the present 3.67 lakh tyres.
The company’s board also approved a rights issue in 1:3 ratio to fund the expansion plans. As per the proposed rights issue, shareholders would get one equity share for every three shares held in the company.
The company is also looking to raise a portion of the required investment through debt and internal accruals.
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