Auto component maker JBM Auto plans set up a new manufacturing plant in Indore at an investment of Rs 100 crore and the new unit is expected to be operational later this year.
The company, which today posted over two-fold rise in its net profit at Rs 22 crore for the fourth quarter ended March 31, 2014, said the new plant will cater to its commercial vehicle customers through the new plant.
"We are investing Rs 100 crore on a new manufacturing plant in Indore. We will cater to customers like Volvo-Eicher, MAN and Mahindra & Mahindra through this facility," JBM Group Executive Director Nishant Arya told PTI.
The company's other manufacturing facilities are located in close proximity of leading automobile hubs at Faridabad, Greater Noida, Nashik, Chennai, Sanand and Pune.
Commenting on the results, Arya said the company's initiatives of cost reduction resulted in a better performance during the quarter.
"With a market showing positive sentiments we project that the coming quarters shall see an improved performance," he added.
The company had posted a net profit of Rs 8.6 crore in the same period of previous fiscal.
Net sales of the company rose to Rs 377 crore for the fourth quarter, as compared to Rs 312 crore in the same period of previous fiscal.
For the fiscal ended March 31, 2014, the company posted a net profit of Rs 57 crore, as against Rs 38 crore in the previous fiscal.
Net sales of the company rose to Rs 1,363 crore for the year, as against Rs 1,170 crore in the previous fiscal.
JBM Shares today closed at Rs 198 apiece on the BSE, up 1.64 per cent from its previous close.
