JK Tyre more than doubles its Q1 profit to Rs 118 cr

JK Tyre and Industries is looking to enter two- and three-wheeler segments in order to further consolidate its position in the tyre segment. The company, which on Tuesday posted over <g data-gr-id="28">twofold</g> rise in its consolidated net profit at Rs 118 crore for the first quarter ended June 30, manufactures radial and bias tyres for truck, buses and passenger vehicles. "We are looking to enter two-wheeler and three-wheeler segments. We <g data-gr-id="27">are currently test</g> marketing the products. We plan to enter in a bigger way this area," JK Tyre and Industries, President and Director Arun K Bajoria told reporters in a conference call.

The company is in the process of working out further details for the segments, he added. JK Tyre and Industries had posted a net profit of Rs 55 crore during the same period of the previous fiscal. Net sales of the company, however, declined to Rs 1,759.91 crore in the first quarter compared with Rs 1,853.92 crore in the same period last year. "Better product mix led to <g data-gr-id="26">a increase</g> in profitability. Our share of product mix ratio of radial and bias tyres has increased to 50:50. Earlier it used to be 65 <g data-gr-id="25">per cent</g> bias tyres and rest radial tyres," Bajoria said. 

When asked about the <g data-gr-id="24">capex</g> for the current fiscal, Bajoria said the company is in the process of investing Rs 1,430 crore at its Chennai plant. "We have already invested around Rs 500 crore and the rest would be invested by the end of the financial year," he added.