JK Tyres maintains profit, despite higher costs

ERJ staff report (DS)

New Delhi, India -- Pre-tax profits at JK Tyre & Industries Ltd jumped for the nine-months ended 30 June 2008, but remained level for the three month period. sales grew steadily in both the three-month and nine-month reporting periods.

For the nine months, JK reported pre-tax profits of Rs1064 million (Euro 16 million) on sales of Rs 27 187 million (Euro 409 million), up from Rs 660 million on Rs 24 098 million in the same period a year earlier. For the three month period, sales grew to Rs 9550 million from 8178 million, while pre-tax profits were Rs 338.6 million compared to Rs 312.3 million a year earlier.

JK said it has established a Mexican subsidiary named Sunrise Holding Mexico, which owns the assets of the tyre maker known as Tornel SA de CV and its subsidiaries. It added that acquisition formalities were completed on 13 June 2008. As a result, said JK Tyre, combined capacity grew to 940 tonnes per day, making JK Tyre the largest tyre maker in India (in the 4-wheeler segment).

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Press release from JK Tyre