JK Tyre & Industries posted 54.7 percent rise in its consolidated net profit at Rs 118.27 crore for the second quarter ended September 30. The company had posted a net profit of Rs 76.45 crore during the same period of previous fiscal. Net sales of the company, however, declined to Rs 1,790.91 crore from Rs 1,858.68 crore during the same period of previous fiscal, JK Tyre & Industries said in a statement.
"The company continues to improve its operational performance despite the challenges of unbridled cheap Chinese imports and slow pick-up of auto industry," JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said. JK Tyre has executed a binding term sheet for the acquisition of Laksar unit of Kesoram Industries Ltd and the process is expected to be completed in couple of months subject to regulatory formalities, he added. "This will further strengthen company's leadership position including its strategic entry into the fast growing 2-3 wheeler tyre segment," Singhania said.
JK Tyre is in the process of expanding production capacity at its Chennai facility. The company has earmarked an amount of Rs 1,430 crore for the plant, out of which it has already invested around Rs 1,000 crore. The remaining amount would be invested before March 31, 2016, said Arun K Bajoria, President, International Operations, JK Tyre & Industries.
The company is also in the process of investing about Rs 150 crore in JK Tornel, Mexico, to raise the capacity to around 50 lakh units per annum from the current 35 lakh units, Bajoria said. "The capacity expansion at Mexico would be completed by the end of this year," he added.
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