New Delhi, May 17, 2019:
Indian tyre industry major, JK Tyre & Industries Limited (JKTIL) today announced its results for Financial Year ending 31st March 2019. Sale sat 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 aslow 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 atCavendish 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.