JK Tyre & Industries today reported a net profit of Rs 25.5 crore for the quarter ended March 31, as against Rs 14 crore in the same period a year ago, up 82 per cent.
The company said total sales during the quarter stood at Rs 1,130 crore as against Rs 926 crore in the corresponding year-ago period, up 22 per cent.
J K Tyre, which has announced a dividend of Rs 3.50 per equity share for the fiscal 2009-10, said it will increase product prices from June to offset input cost hike.
"We are going to increase prices by 3-5 per cent in June due to rising natural rubber prices," JK Tyre Vice-Chairman and Managing Director Raghupati Singhania told reporters here.
For the fiscal year 2009-10, the consolidated profit after tax (PAT) stood at Rs 223.81 crore, and sales and other operating income at Rs 4,584.68 crore.
"This was a year full of challenges and achievements. Apart from achieving all time high sales, JK tyre recorded excellent profitability for 2009-10 on account of all round improvement in operating efficiencies, higher productivity cost reduction and richer product mix," Singhania said.
Mexico-based Tornel, which was acquired last year, has made a turnaround and recorded an impressive performance during the year. Tornel has contributed to JK Tyre’s growth both in top line as well as profitability, he said.
Singhania said the company's ongoing expansion of 'off the road tyre' (OTR) and car radial tyres are progressing as per schedule.
"Truck and bus radial tyre capacity is being further expanded from 8 lakh tyres to 12 lakh tyres per annum. In addition, car radial tyre capacity is being further expanded by 25 lakh tyres per annum," he said.
