JK Tyre sales, profits jump in first half

New Delhi, India - J K Tyre & Industries Ltd., recorded a turnover of Rs.15 920 million (€287 million) in the six months to 31 March, 2007, up from Rs 13 591 million a year ago. Operating profit for the period was Rs.1144 million, up from Rs 781 million recorded a year earlier. Pre-tax profit for the period jumped to Rs 347 million, from Rs 84.6 million a year ago.

Commenting on the results, Dr. Raghupati Singhania, managing director of JK Tyre & Industries said, the Indian road transport sector and tyre industry had been natural beneficiaries of "Heavy investment in infrastructure and accelerated economic activity," by the government. Singhania said JKTI expanded both truck radial and passenger radial capacity in 2006 and the benefits of those investments are now being realised. Singhania added, "Cost reduction measures initiated by the Company earlier have also contributed in profitability improvement”.

Singhania added that “JK Tyre has taken yet another expansion of Passenger Radial and LCV tyre capacity. This will further strengthen Company's leadership position in the Indian Tyre market”. The company said it has also expanded its Off The Road (OTR) capacity in view of the growing potential of this segment. Further expansion of OTR capacity is under way.

The company, previously known as JK Tyre recently changed its name to JK Tyre & Industries Ltd. (JKTI). It produces tyres under the JK Tyre and Vikrant brands.

JK Tyre claims to have pioneered radial technology in India and says it was the first to manufacture Steel belted Radial Tyres there, in 1977. On its website, the company says its R&D Centre, a one-of-its kind institute in Asia, keeps the Company at the cutting edge of tyre technology. The Company also receives technological support from its technical collaborators, Continental AG of Germany, the fourth largest tyre manufacturer in the world.

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Reults statement from JKTI

Press release from JKTI (Via MoneyControl, India))

Corproate profile of JKTI

Website of JK Tyre & Industries