JK Tyre & Industries Ltd. (JK Tyre) has reported a consolidated net profit of Rs.464 Crore for the FY ending 31st March, 2016 – an increase of 41% over the previous Fiscal. The company achieved consolidated turnover of Rs.7654 Crore. On a standalone basis, JK Tyre achieved a turnover of Rs.6580 Crore with a PAT of Rs.401 Crore, an increase of 58% over the FY 14-15. In view of the significant improved financial performance of the Company, the Board has recommended a dividend of 125 % on the equity shares of the Company to be approved by the Shareholders at the forthcoming Annual General Meeting.
Commenting on the results, Dr Raghupati Singhania, Chairman & Managing Director – JK Tyre & Industries Ltd said, “JK Tyre had a robust year with profits at its highest, during the year. With Auto industry taking off to a positive start in 2016, the outlook for the current fiscal is promising and we are confident of strengthening our position further this year. The Company has performed well despite challenges from the dumping of cheap Chinese tyres and a surge in rubber prices.” The expansion at JK Tyre TBR and PCR categories at Chennai Trye Plant at an outlay of Rs.1430 Crore has been completed during the year.
Talking about the acquisition of Cavendish Industries Ltd., which has 3 modern tyre plants at Laksar near Haridwar, Dr Singhania said “With the acquisition of Cavendish Industries in April 2016 we have not only forayed into the two and three-wheeler segments but have also scaled up our capacities in the existing segments. The additional capacity will further consolidate our position in the TBR segment, where we already are leaders.”