JK Tyre Achieves “Excellent Performance” in Quarter

During the first quarter of the current financial year JK Tyre & Industries Ltd. recorded “an excellent performance,” the company’s vice-chairman and managing director, Dr. Raghupati Singhania, noted. According to Dr. Singhania, this positive performance took the form of “all round cost reduction measures, better operating efficiencies, productivity and richer product mix.”

During the three months from April to June, the company achieved nets sales of Rs 8.98 billion (£112.4 million) and operating profit of Rs 1.07 billion (£13.4 million). The unaudited results show pre-tax profit to be Rs 620 million (£7.76 million).

“Radialisation of [the] commercial tyre segment is catching up at a faster pace,” added Dr. Singhania. “The growth momentum shall continue in the coming months with benefits available from recent completion of Truck Radial Expansion Project of doubling the capacity to 8 lac (800,000) tyres per annum involving a capital expenditure of Rs 315 crores (£39.4 million). It is indeed a matter of pride that JK Tyre has yet again been ranked number one in the JD Power Tyre Customer Satisfaction Index – 2009. Also once again JK Tyre has been recognised as a Superbrand – the only tyre company to have received this coveted recognition”.

In general JK Tyre news, the company is said to now possess a capacity to produce around 16 million tyres per annum at its seven facilities. Furthermore, the first batch of giant tyres produced under a long-term supply agreement with earthmoving equipment manufacturer BEML has recently been delivered to the customer. An Rs 1.2 billion (£15 million) OTR tyre capacity expansion project is said to be progressing well and should be completed on schedule early next year.