JK Tyre and Industries on Wednesday reported a consolidated net profit of Rs 110.15 crore for the second quarter ended September 30, 2016 on account of growth in sales of passenger radials and agri tyres. The company had posted a net profit of Rs 115.84 crore in the July-September quarter a year-ago, it said in a statement.
Watch what else is making news:
Its consolidated net sales during the period under review stood at Rs 1,957.34 crore compared to Rs 1,947.87 crore in the corresponding quarter previous fiscal. Total expenses was at Rs 1,753.67 crore versus Rs 1,708.16 crore earlier.
JK Tyre Chairman and Managing Director Raghupati Singhania said: “JK 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 second quarter on a consolidated basis.”
He further said: “Passenger radials and agri tyres have recorded double digit growth. With good monsoon coupled with renewed focus of the government on roads and infrastructure and marginally cheaper consumer financing, commercial vehicle sale is expected to show good growth in the coming period.” Since the financial results also include that of Cavendish Industries Ltd (CIL), which the company had acquired in middle of April, the figures are not comparable, it added.
In the first half of 2016-17, JK Tyre’s consolidated net profit was at Rs 200.41 crore. It was Rs 232.91 crore in the year-ago period. Net sales in the first half of the current fiscal stood at Rs 3,832.19 crore. It was Rs 3,868.17 crore in the same period last year.
Meanwhile, in a separate filing, JK Tyre said its board in a meeting held today approved to raise Rs 1,000 crore through non-convertible debentures (NCDs). “The board at its meeting held today… approved the issues of NCDs, inter alia, on private placement basis upto an amount of Rs 1,000 crore in one or more tranches, within the borrowing limits approved by the members,” it said.
The company added that it would obtain approval from its members regarding the proposal through postal ballot. The company also expressed concern over the import of cheap Chinese tyres in the domestic market. The tyre industry had taken up this matter with the government 18 months ago and requested it to impose anti-dumping duty and is waiting for an outcome. “Import of cheaper Chinese tyres continues unabatedly in the truck/bus radial segment which is causing serious injury to the Indian tyre industry,” said Singhania. Shares of JK Tyre and Industries today settled at Rs 137.80 on BSE, down 3.13 per cent.