JK Tyre Quarter Profits Hit by Increased Costs

Third quarter profits for JK Tyre & Industries Ltd were dented by rising material costs. Although sales in the three months to June 30,2008 were 17.7 per cent up on the previous year, between April and June the company recorded a net profit of Rs 202.4 million (£2.37 million), an increase of just 0.25 per cent on the previous year’s third quarter. Net sales for the quarter were Rs 8.49 billion (£99.57 million), as opposed to 7.22 billion (£84.68 million) a year earlier.

JK Tyre finance director A.K. Kinra has told media that while increases to the company’s costs in the quarter were “significant”, the company has raised product prices and expects to see benefits in the current quarter. The firm also anticipates accelerated growth brought about by the acquisition of Mexico’s Tornel and the implementation of an Rs 4.8 billion (£56.3 million) expansion programme.