|Rs. / Crore|
|Profit before tax||270||47|
|Profit after tax||171||34|
Indian tyre industry major, JK Tyre & Industries Limited (JKTIL) today announced its results for Financial Year ending 31st March 2019. Sales at Rs.10,370 crore for the year grew by 24% while Operating Profit for the year at Rs.1,196 crore was 35% higher. PBT for the year was Rs.270 crore on a consolidated basis. Q4 sales at Rs. 2,706 Crores also grew by 18 % over the corresponding period.
Commenting upon the results, Dr. Raghupati Singhania, Chairman and Managing Director of the Company said, “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% over the previous year, surpassing the industry growth. Despite Q4 profitability being impacted due to high raw material prices, the operating margins for the year as a whole increased by 35%.”
JK Tyre volumes grew by 20% 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 utilization of Cavendish, the recently acquired subsidiary of the company. This also resulted in higher PBT for the year.
Dr. Singhania added: "The company continues to maintain its leadership position in India’s Truck/Bus Radial tyres segment. Capacity expansion of Truck/Bus Radials undertaken at Cavendish will help the company further bolster its position in this segment."
Furthermore, the sales of 2-3 wheeler segment grew by over 40%, and the Company has established itself as a recognized player in this segment as well, which it entered only recently.
The subsidiary JK Tornel, Mexico continues to perform well.
It may be mentioned that the company recently made a preferential allotment of Equity Shares to the Promoter Group for an amount aggregating Rs. 200 crores, which adds to its Net Worth.
About JK Tyre & Industries Limited
Part of the JK Organisation, JK Tyre & Industries Ltd is a leading tyre manufacturer in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments in the automobile industry. JK Tyre is the only tyre manufacturer in India to be included in the list of Superbrand in 2019, the seventh time the honour has been conferred upon the company.
JK Tyre has global presence in over 105 countries across six continents, backed by production support from 12 plants - 9 in India and 3 in Mexico. Currently, the capacity across all its plants is about 35 million tyres per annum. In April 2016, JK Tyre acquired Cavendish India Limited from Birla Tyres. With this acquisition, the company added three modern plants to its portfolio taking the total count to 12. The acquisition helped the tyre major foray into the two/three wheeler segment as well. In 2018, the company inaugurated its state-of-the-art ‘Global Research & Technology Centre’ - ‘Raghupati Singhania Centre of Excellence’ (RPSCOE) at Mysuru.
Pioneers of radial technology, JK Tyre produced the first radial tyre in 1977 and is currently the market leader in Truck Bus Radial segment. With over three decades of technological innovation, JK Tyre offers tyre for entire range of passenger and commercial vehicles, starting from a 3 kg two-wheeler tyre to a 3.5 ton OTR tyre.
JK Tyre & Industries Ltd has a strong network of 4000 dealers and over 450 dedicated Brand shops called as Steel Wheels and Xpress Wheels providing complete solutions to its customers.