Pre-Tax Profit Skyrockets at JK Tyre

The un-audited financial results released by JK Tyre & Industries Ltd for the quarter ending June 30, 2007 – the third quarter of India’s financial year – reveal good news for shareholders and paint a picture of a company in a strong position.

Revenues of Rs 8,178 billion (£100 million) were recorded for the quarter and the company reported EBIDTA of Rs 725.3 million (£8.8 million), up from the Rs 444.9 million (£5.4 million) achieved last year. Pre-tax profit rose to Rs 312.3 million (£3.8 million), a huge jump from a year ago when profits before tax stood at Rs 56.1 million (£683,700). The earnings per share for the quarter stands at Rs 6.56 (£0.08).

Commenting on the company’s impressive performance, vice chairman and managing director of JK Tyre & Industries, Dr. Raghupati Singhania, credited the company’s growth in revenue and profit to a number of factors including previously initiated cost reduction measures and robust vehicle sales in India. Dr. Singhania added that the large investments JK Tyre was making to increase TBR output would further strengthen the company’s position in the nation’s tyre market. JK Tyre is in the process of investing Rs 3.6 billion (£44 million) to expand TBR and speciality tyre output. TBR capacity will more than double from its current 367,000 units per annum up to 800,000.