The net sales of JK Tyre & Industries Ltd. (JKTIL) for the first quarter of the current financial year amounting to Rs. 2,440 crores is higher by 35% as compared to the same quarter of last year. Operating profit and PBT for the quarter are Rs. 332 crores and Rs. 110 crores respectively, on a consolidated basis.
Commenting on the results, Dr. Raghupati Singhania, Chairman and Managing Director of the company, said: “In Q1-FY19, on a standalone basis, JK Tyre net sales recorded an impressive increase of 44%, and on a consolidated basis, net sales grew by 35%, with higher volumes across categories, especially in truck/bus radial, passenger car and light truck radials. Increased volumes and internal efficiencies helped improve profitability”.
He emphasized: “JK Tyre maintained its leadership in the fast growing truck/bus radial segment, which witnessed further radialization in Q1. Moreover, it has further deepened its penetration in the market. Expansion of truck/bus radial capacity undertaken at Cavendish will further strengthen our leadership in this segment. We are excited at the growth of the passenger car industry and are well prepared to keep pace with the opportunities arising therefrom”.
Two/three-wheeler segment is also growing, and JK Tyre is happy at its enhanced presence in this segment, he added.
The company’s subsidiaries, namely, JK Tornel, Mexico, and Cavendish Industries Ltd., have performed well during the quarter. Labour restructuring completed at JK Tornel last year is reaping good dividend which has added to the overall profitability.