New Delhi - JK Tyre & Industries Ltd.  (JK Tyre),  Industry leaders  and manufacturer of well known 'JK TYRE' and 'VIKRANT' brands, today announced  its un-audited financial  results for the 2^nd Quarter ending 31^st March, 2008 with PBT increasing to Rs.38.32, an increase of 77%.

JK Tyre has achieved this outstanding performance due to its relentless drive and improvement of all-round efficiencies.  JK Tyre has recorded a turnover of Rs.940 crores, an increase of 11% over the corresponding Quarter.

Highlights of Quarter ended 31^st March, 2008:
- EBITDA of Rs.81.54 crores as compared to Rs.62.40 crores in the corresponding quarter of the previous year.
- PBT soars to Rs.38.32 crores as against Rs.21.66 crores of the corresponding quarter.
- Earning per share (EPS) at Rs.7.48 for the Quarter.

Commenting upon, Dr Raghupati Singhania, Vice Chairman & Managing Director said, "JK Tyre continues to maintain its growth momentum with sales and profits achieving newer heights. This pace will get accelerated with the implementation of the expansion projects now well under way".

For the half year ended March 31, 2008, JK Tyre has achieved turnover of Rs.1764 crores. Profit Before Tax up at Rs.72.52 crores has been more than doubled.  Profit After Tax for the half year aggregating Rs.44.76 crores.

The Company has recently announced acquisition of 100% shareholding in Tornel, Mexico.   Strategic location of Mexico offers JK Tyre free access to NAFTA trade block and emerging economies of Central and Southern America.  The combined capacity after this acquisition would become 940 tons per day, making JK Tyre the largest Indian Four Wheeler tyre company with turnover of over USD 1 billion.

Tornel has three operating tyre plants with an aggregate capacity of 6.6 million tyres per annum.   The Company is present  in the entire range of Bias and Radial Tyres - from Truck, LCV, Farm and Industrial tyres in Bias category and Truck, LCV and High Speed Passenger Car tyres in Radial category. This acquisition has a strategic fit for JK Tyre as JK Tyre is already exporting to North  and South American Markets.  The acquisition will add substantial value to JK Tyre  existing tyre operations and strengthen its brand positioning.

JK Tyre has been in the forefront  of radial revolution in the country.  After pioneering Passenger Car Radialization way back in 1977 in India, JK Tyre has ben spearheading Truck/Bus radialization at an accelerated pace.  Large investments are well under way to expand truck/Bus radial capacity, which will further strengthen JK Tyre's leadership position in the Indian Tyre market.

Expansion Plans:
The Expansion of capacities in the Truck/Bus Radials, OTR and manufacture of Specialty tyres an an outlay of Rs.480 crores is well under implementation.  To part finance the expansions, the Board has already announced Rights Issue of one Equity Share for 3 shares held.  The Company has already tied up all the finances for these Expansion projects.

The capacity expansion and the Tornel acquisition will lead to further growth and improvement in the profitability in the times ahead.

JK  Tyre and Industries, previously known JK Industries is the flagship company of the JK Organisation known for manufacturing country's leading tyre brands - JK Tyre and Vikrant. It is India's leading four-wheeler tyre manufacturer. As the pioneers of radial technology in India, the company unleashed the radial revolution in the Truck and the Bus segments.

Courtesy: JK Tyre & Industries Limited, India

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Posted by Naresh Koshti on 29 April, 2008 4:45:31 PM IST #