For the year ended March 31, 2019, JK Tyre & Industries Ltd.’s (JKTIL) sales grew by 24% at Rs. 10,370 crores, while operating profit for the year at Rs. 1,196 crores was 35% higher. PBT was Rs. 270 crores on a consolidated basis. Q4 sales at Rs. 2,706 crores also grew by 18% over the corresponding period.
Commenting upon the results, Dr. Raghupati Singhania, Chairman and Managing Director of the company, said: “FY19 was indeed a landmark year for the company. JK Tyre sales crossed the Rs. 10,000-crore mark while achieving a robust growth of 24% over the previous year, surpassing the industry growth. Despite Q4 profitability being impacted due to high raw material prices, the operating margins for the year as a whole increased by 35%”.
JK Tyre volumes grew by 20% despite a slowdown in the automotive sector in the second half of the year. The company could enhance its market presence across categories, led by the high capacity utilization of Cavendish, the recently acquired subsidiary of the company. This also resulted in higher PBT for the year.
Dr. Singhania added: “The company continues to maintain its leadership position in India’s truck/bus radial tyres segment. Capacity expansion of truck/bus radials undertaken at Cavendish will help the company further bolster its position in this segment.
Furthermore, the sales in the 2-3-wheeler segment grew by over 40%, and the company has established itself as a recognized player in this segment as well, which it entered only recently.
The subsidiary, JK Tornel, Mexico, continues to perform well.
It may be mentioned that the company recently made a preferential allotment of equity shares to the promoter group for an amount aggregating Rs. 200 crores, which adds to its net worth.
JK Tyre opens 45th Truck Wheels Centre
JK Tyre inaugurated an all-new state-of-the-art ‘JK Truck Wheels Centre’ on old Mumbai-Pune highway (NH48) at Dahisar Mori, Panvel Taluka, Dist. Raigad. The centre is another addition to the company’s vision in expanding its network across the country.
Mr. Sanjeev Sharma, General Manager – Fleet Management, JK Tyre & Industries, inaugurated the centre in the presence of several dignitaries, including key company officials and dealers. The new centre comes up within a month of the inauguration of a JK Retread Centre in Mumbai, reflecting the company’s commitment towards its customers.
Commenting on the occasion, Mr. Sanjeev Sharma said: “As the leader in franchise network for tyre care solutions, we are committed to provide the best-in-class services to our customers across the country. Our new JK Tyre Wheel Centre on old Mumbai-Pune Highway at Dahisar Mori, is reflective of this untiring focus. We are confident that the new state-on-the-art centre will contribute towards providing hassle-free services for the truck and bus owners in Maharashtra.”
Spread over an area of 5,000 sq. ft., the JK Truck Wheels Centre is strategically located in Dahisar Mori, Panvel, Mumbai, connecting Delhi-Chennai. The centre will also serve as a key transit point for vehicles headed towards other prominent cities like Delhi, Jaipur, Ahmedabad, Vadodara, Surat, Thane, Pune, Kolhapur, Bangalore, Hyderabad and Chennai.
The new Centre offers end-to-end solutions for truck and bus tyre care and is equipped with high-quality machinery, such as best-in-class wheel aligner, automatic tyre changing machinery, nitrogen inflator, radial tyre repairs and pneumatic tools set.
In 2016, JK Tyre became the first tyre manufacturer to sell 10 million truck and bus radial tyres in the country. The company has evolved as a 360-degree service solutions provider and is currently the No.1 franchise network that provides tyre care solutions through its network of service centres across the country.