JK Tyre reports sharp increase in net profit during Q2 2018-19

JK Tyre & Industries Tuesday posted over four-fold increase in its consolidated net profit at Rs 46 crore for the second quarter ended September 30.

The company had reported a net profit of Rs 10 crore during the same period of the previous fiscal.

Net sales rose by 23 per cent to Rs 2,548 crore for the second quarter, as against Rs 2,068 crore during the same period of the previous fiscal, JK Tyre & Industries said in a statement.

"Buoyancy in demand continued in the second quarter which has helped the company to achieve a good growth in sales," JK Tyre Chairman and Managing Director Raghupati Singhania said.

He, however, added that increasing oil prices and rupee depreciation impacted raw material costs and continue to remain an area of concern.

Singhania said an increase in radicalization in the fast-growing truck/bus radial segment, Cavendish Industries Ltd (CIL), a subsidiary of JK Tyre has undertaken further expansion of its manufacturing capacity.

"This will further strengthen our leadership in this important segment. Furthermore, tractor tyre capacity is also being expanded to meet the growing demand from the agriculture sector," he added.

Shares of the company Tuesday ended 7.95 per cent up at Rs 105.90 on the BSE.