JK Tyres Q4 profit dips on subdued demand
JK Tyres & Industries’ net profit for the four quarter ended March 31 plunged 36% despite a rise in sales in the quarter. The Raghupati Singhania-led company reported net profit of Rs44.96 crore for the four quarter compared to a net profit of Rs 70.35 crore in a year-ago period.
Sales stood at Rs1,895.62 crore in the Jan-Mar quarter against Rs 1,704.87 crore in the same quarter last year.
“Commercial vehicle production declined and even passenger cars recorded a negative growth, first time ever in the decade. This led to subdued demand for tyres,” JK Tyre & Industries Ltd Chairman & Managing Director Raghupati Singhania said in a statement.
The company statement also added that JK has undertaken a major expansion at an outlay of Rs1430 crore, to add capacity in the TBR and PCR categories at Chennai Tyre plant.
This is slated for completion in phases by early 2016.