JK Tyre Q3 Net Profit Down Three-Quarters
India’s JK Tyre has posted net profits for its third quarter ending 31 December, 2010 of 90.14 million rupees, a year-on-year reduction of 74.93 per cent on the 360.46 million rupees posted in the same quarter at the end of 2009. “It was a very challenging quarter as the prices of natural rubber have increased 100 per cent, attaining unprecedented levels. Other raw materials have also registered a sharp increase of nearly 40 per cent,” stated JK Tyre & Industries vice chairman & managing director Raghupati Singhania.
The effect of increased raw material costs is highlighted by the company’s net sales figures, in which the company posted net sales of 11,740.4 million rupees, versus 7,098.7 million rupees in the 2009 quarter, making a 47 per cent increase. Singhania told India’s Economic Times that margins were adversely affected by the significant gap between input costs and selling prices. He also reports growing domestic demand thanks to “rapid growth of the auto industry.” The company continues to expand, having moved into Europe, as tyrepress.com reported in September, and increasing capacity in December.
The Economic Times report said the firm is expanding its truck and bus radial tyre manufacturing capacity from 800,000 to 1,400,000 tyres per annum, at Mysore, as well as at a new plant in Chennai. The company will have the capacity to manufacture 2,500,000 passenger car tyres per annum soon in Chennai. “Our projects are well on course and Vikrant Tyre expansion at Mysore is expected to be commissioned by middle of the current year itself,” Singhania told the Economic Times.
Related News:
- JK Tyre Announces 2-4% Price Hike
- JK Tyre Seeking 20% Indian Market Share
- JK Tyre Capacity – and Prices – to Increase
- JK Tyre: Into Europe with Self-Confidence
- JK Tyre’s Singhania Voted “CEO of the Year”
Comments