JK Tyre revenue up 8% in FY18
JK Tyre net revenue for 2017-18 was at Rs 8272 cr recorded an increase of eight percent. Operating Profit was Rs 883 cr and PBT for the year was Rs 107 cr on a consolidated basis.
Dr Raghupati Singhania, Chairman and Managing Director of JK Tyre said: “In the year 2017-18, the sales volumes at JK Tyre grew by 11 percent. The Company registered a growth higher than the industry at large, which helped JK Tyre increase its presence across categories especially in Truck, Light Truck, SCV, Farm and OTR Tyres. The year witnessed an unprecedented increase in oil prices which had a major impact on margins.”
“Truck/Bus radicalisation which JK Tyre had pioneered, further accelerated to 47% during the year and is expected to cross 50% in the coming year. JK Tyre maintained its leadership in this growing segment. In a short span after acquisition by JK Tyre, an expansion of its Truck/Bus radial capacity has been undertaken at Cavendish, which will further strengthen our market presence. The capacities acquired through Cavendish has helped JK Tyre to gain market penetration apart from increasing its presence in the fast-growing 2/3 wheeler segment,” he added.
The imposition of much awaited anti-dumping duty on cheap Chinese truck/bus radial tyres was indeed a welcome step and has helped to enhance volumes. Company’s subsidiaries namely, JK Tornel, Mexico and Cavendish Industries Ltd. are performing well, the company said.