Recently, JK Tyre & Industries have said that their sales during the 2018-2019 period surged by 24 percent at INR. 10,370 crore. At the same time, the operating profit leapt by 35 percent at INR. 1,196 crore.
The same sentiment was reflected in a statement given by Mr. Raghupati Singhania, Chairman & Managing Director, JK Tyre. He explained that although the profitability in the Q4 was hit by high raw material prices, the operating margins were increased by 35 percent. Despite the decline in the Indian automobile sector, the JK Tyre volumes grew by about 20 percent in the second half of the year.
Mr. Singhania also told that the Indian tyre major was able to strengthen its position across categories because of the high capacity utilisation of Cavendish, the recently acquired subsidiary of the company, which also resulted in higher profit before tax for the year.
The company entered the two and three-wheeler segment recently and has established itself as a leading player in the segment with sales surging over 40 percent in this segment. On the other hand, its subsidiary JK Tornel is also doing well in Mexico. Overall, JK Tyre has a presence across six continents in over 105 countries.
The company is well supported by a dozen production plants (9 in India and 3 in Mexico). The production across all its plants currently is about 3.5 crore tyres per year for two, three as well as four wheelers.