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JK Tyre sales cross Rs 10,000 crore in FY 19

ANI
17 May 2019, 17:55 GMT+10

New Delhi [India], May 17 (ANI): JK Tyre and lndustries said its sales during 2018-19 grew by 24 per cent at Rs 10,370 crore while operating profit was up 35 per cent at Rs 1,196 crore.

Profit before tax for the year was Rs 270 crore on a consolidated basis. January to March quarter sales at Rs 2,706 crore also grew by 18 per cent over the corresponding period.

"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 per cent over the previous year, surpassing the industry growth," said Chairman and Managing Director Raghupati Singhania.

"Despite Q4 profitability being impacted due to high raw material prices, the operating margins for the year as a whole increased by 35 per cent," he said in a statement late on Thursday after stock market closing hour.

JK Tyre volumes grew by 20 per cent despite a slow down 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 utilisation of Cavendish, the recently-acquired subsidiary of the company. This also resulted in higher profit before tax for the year.

The company continues to maintain its leadership position in India's truck and bus radial tyres segment. Capacity expansion of truck and bus radials undertaken at Cavendish will help the company further bolster its position in this segment, said Singhania.

The sales of two and three wheeler segment grew by over 40 per cent. JK Tyre entered the segment recently and has established itself as a recognised player. The subsidiary JK Tornel in Mexico also continues to perform well.

The company recently made a preferential allotment of equity shares to the promoter group for an amount aggregating Rs 200 crore, which adds to its net worth.

JK Tyre has a global presence in over 105 countries across six continents, backed by production support from 12 plants -- nine in India and three in Mexico. The currently across all its plants is about 3.5 crore tyres per annum. (ANI)

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