JK Tyre results

JK Tyre Industries on Tuesday reported fifty per cent fall in its web profit for the quarter ended March thirty one at Rs thirteen crore attributable to sever impact of high raw material costs. In order to mitigate the impact of rising natural rubber costs, the corporate is "seriously evaluating" choices to amass companies engaged in plantation of the commodity. it's additionally earmarked a capex of Rs 960 crore for this fiscal. The company had posted a web profit of Rs twenty six crore within the January-March quarter last year, JK Tyre & Industries President and Director Arun K Bajoria told reporters here. The net sales throughout the fourth quarter of last fiscal, however, increased by twenty eight.53 per cent to Rs one,347 crore from Rs one,048 crore within the year-ago amount. At 10:08 am, shares of the corporate were trading two.32 per cent up at Rs ninety.50 on the Bombay Stock Exchange . "It was a really robust year in terms of raw material costs, that increased by concerning forty three per cent in last fiscal. The impact of this rise in our margin was 25-27 per cent, however we have a tendency to raised the tyre rates by solely 17-18 per cent in FY11. therefore this impacted our bottomline," Bajoria said. Besides, low cost imports of radial tyres from China has additionally affected the corporate yet because the business, he added. When asked concerning its strategy to counter the impact of rising raw material costs, Bajoria said: "We are observing rubber plantation. we have a tendency to are seriously evaluating choices to amass firms engaged in rubber plantations." He, however, declined to share details saying nothing has been finalised however. "We are engaged on to substitute rubber by another material," he said, adding, the R&D goes on at 3 completely different places across the country. JK Tyre & Industries spends concerning one.5-2 per cent of its web sales in R&D activities per annum. For the whole 2010-11, the company's consolidated web profit declined by seventy one.53 per cent to Rs sixty two.55 crore from Rs 219.74 crore within the previous fiscal. The company's consolidated web sales rose to Rs five,945.44 crore for the year ended March thirty one, 2011, from Rs 4,570.58 crore in FY'10, up 30.08 per cent. The board on Tuesday counseled a dividend of thirty per cent, that is Rs three per equity share, for 2010-11. Talking concerning the outlook, Bajoria said: "We hope the same growth of around thirty per cent in our web sales in 2011-12". He any said the corporate can invest Rs 960 crore during this fiscal, mainly to expand its capacities of assorted tyres. The company is expanding the truck and bus radial tyres capability at the Mysore facility to fourteen lakh units annually by 2013 from eight lakh units nowadays. Bajoria additionally said the firm is enhancing its total output of passenger automobile radial tyres by operationalisation of its greenfield facility in Chennai by the tip of 2011. "Currently our total passenger automobile radial tyre capability is fifty lakh units. when the Chennai plant starts manufacturing, the output can go up to seventy five lakh units annually," he added. The company on Tuesday announced to hike costs of its entire vary of merchandise by up to six per cent from June on account of rising input prices. It produces tyres for tractor, passenger automobile, truck, bus and off-the-road vehicles. the costs of those vary between Rs one,500 and Rs twelve lakh.