The turnover of JK Tyre & Industries Ltd. (JK Tyre) for the quarter ended September 30, 2016 was Rs. 2,077 crores, with an operating profit of Rs. 394 crores as against Rs. 317 crores in the corresponding quarter of last year, marking an increase of 24 per cent.
Commenting on the results, Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre, said: âJK Tyre continues to surge ahead in the Indian market with higher sales in volume terms. The company continues to maintain its leadership in truck / bus radials, and has recorded higher operating profit for the quarter on a consolidated basis.â
Passenger radials and agri tyres have recorded a double-digit growth. With good monsoon, coupled with renewed focus of the Government on roads & infrastructure and marginally cheaper consumer financing, commercial vehicle sale is expected to show good growth in the coming period.
â2/3 wheeler tyres launched by Cavendish Industries Ltd., a subsidiary of JK Tyre, acquired in April 2016, have been well received in the market place. With the larger volumes available in the coming period, we hope to further strengthen our market position in this high growth area,â he said.
Dr. Singhania further observed that import of cheaper Chinese tyres continues unabatedly in the truck / bus radial segment which is causing serious injury to the Indian tyre industry. The industry has made large investment in building truck / bus radial capacity in the last few years and has generated huge direct and indirect of employment opportunities, which could be in jeopardy on account of these imports. Of course, the tyre industry has taken up this matter with the Government more than 18 months back, with a request for imposition of anti-dumping duty on these cheap imports. The outcome is awaited.