Jk Tyre profits increase by 29pc in FY 14.

Leading tyre major JK Tyre has recorded a turnover of Rs 8279 crore for the financial year ended March 31, 2014, a growth of 9pc as compared to the previous year. The company’s operating profits stood at Rs 890 crore, which is an increase of 41pc, while profit before tax was Rs 374 crore as against Rs 264 crore last year. This was an increase of 42pc. Net profits stood at Rs 263 crore, up 29pc over the previous year.

The Board of Directors of JK Tyre & Industries Ltd. On May 28, 2014 approved the company’s financial results for  FY 14 and recommended a dividend of 50pc  on the equity shares of the company to be approved by the shareholders at the Annual General Meeting that will be held later in the year.

 The consolidated turnover declared includes that of JK Tyre & Industries as well as JK Tornel, Mexico. The total exports from both India as well as Mexico plants stood at Rs 1605 crore, a jump of 20pc. JK Tyre is a leader in truck/bus radial segment in India. It has maintained its No.1 position, with a market share of 34pc.

In another first, JK Tyre partnered with Tata Motors to host the first ever Truck Racing event in India. All racing trucks were exclusively fitted with specially made JK Truck Radial Racing tires, which performed extremely well, as acknowledged by the international drivers. The company is known for its deep rooted presence in the Motorsports arena. Incidentally, JK Tyre National Karting Championship has completed 10 years.

Dr Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries Ltd.  Said, “the Company has performed well, in the face of the challenges during the year  2013-14.  Commercial vehicle production declined and even passenger cars recorded a negative growth, first time ever in the decade.  This led to subdued demand for tyres.  To combat the sluggish market conditions, JK Tyre undertook several strategic actions by renewing its thrust in the replacement market as also adding new OEMs.  The company widened its network of customer touch points which enabled it to deliver better service to its customers.  Aggressive efforts resulted in export recording a 23pc increase during the year”.

“JK Tornel, Mexico continues to perform well, which has added to the  bottom line of JK Tire” noted  Dr Singhania.

The company has undertaken a major expansion at an outlay of Rs.1430 Crores, to add capacities in the TBR and PCR categories at Chennai Tyre Plant.  This is slated for completion in phases by early 2016.

Source: JK Tyre