Indian Tyre Industry major, JK Tyre & Industries Ltd. (JK Tyre)today announced the Unaudited Q3 results. On a Consolidated basis, JK Tyre recorded Net Sales of Rs.2742 Crores for the Qtr. which is 28% higher over the corresponding period. EBITDA margin at Rs.276 Crores is higher by 23%.
Commenting on the Company’s performance in the 3rd Qtr., Dr Raghupati Singhania, Chairman & Managing Director of JK Tyre said, “volumes have increased across segments which helped the Company achieve robust growth in Sales. Truck and Bus Radial tyres recorded an impressive volume growth of 30% during the 9 months period of the current year, thereby further strengthening JK Tyre’s leadership in the segment.
Dr Singhania further added, “increase in input costs especially petro based raw materials has impacted margins in the current quarter. Going forward, it is expected that the raw material prices may moderate on the back of softening crude prices.”
Dr Singhania further added, “that the expansion of Truck/Bus Radial capacity at Cavendish, a subsidiary of JK Tyre, is near completion. Keeping in view the rising demand for company’s Truck/Bus Radials, a further expansion at the same facility has been taken up to further increase the capacity by 20%.”
The Company has planned a Preferential allotment of Rs. 200 crores to the promoter group. This will go a long way in augmenting the long term resources of the company apart from improving the leveraging.
The Company continues to strengthen its presence inthe 2/3 Wheeler tyre market.
Subsidiary companies viz. JK Tornel, Mexico and Cavendish Industries continue to perform well.