JK Tyre's Q1 net profit rises 113 per cent, operating profit up 56 per cent
Published On 06-Jun-2016 21:52:31
JK Tyre and Industries Ltd. reported a consolidated net profit of Rs 118 crore during the 1st quarter that ended on June 30, 2015. There is a significant jump of 113 per cent compared to the net profit of Rs 55 crore during the corresponding quarter of last year. The company reported this year's turnover as Rs 1,676 crore with operating profit of Rs 260 crore, a clear 56 per cent rise compared to the same period last year.
Dr Raghupati Singhania, Chairman and Managing Director of JK Tyre, said, “JK Tyre continues to realize value by enriching its product mix and offering new technologically-advanced products to the consumers across the product categories.” Commenting on the issue of dumping of tyres by Chinese manufacturers, he said, “The menace of dumping of Chinese tyres is unabated and urgent steps are required to impose anti-dumping duty to ensure level playing field in the market place.”
JK Tyre has also launched its new range of SUV tyres called Ranger. The tyre features dual-tread compound that provides maximum grip and control. The Ranger tyres will be available in two specialized applications, Ranger A/T for all-terrain performance and Ranger H/T for tarmac application. The growing number of off-roading enthusiasts in the country presented the opportunity to cater to this market as well. JK Tyre also plans to export the Ranger series tyres.
JK Tyre's long-term issuer ratings were also improved by the Ind-Ra rating agency from 'IND A+' to 'IND AA-'. The stronger rating is the result of JK Tyres's consistent growth in the truck and bus radial segment this year and its stable fundamentals. JK Tornel of Mexico is also doing well. Founded in 1933, Tornel is the only surviving tyre manufacturer in Mexico after JK Tyre acquired the company in 2008 for $68 million.