JK Tyres sees profit fall on much higher sales

ERJ staff report (DS)

Mumbai, India -- Sales grew strongly at Indian tyre maker JK Tyre & Industries Ltd, but profits fell sharply on higher material costs.

For the three months to 31 December 2010, sales grew to Rs 12 800 million (euro 206 million) from Rs 8587 million a year previously. Net profits, however, fell to Rs 91.4 million from Rs 364.6 million. Raw material costs almost doubled to Rs 9180 million, from Rs 4843 million in the prior year period.

The company said it had been unable to raise selling prices of its tyres to adequately to compensate for the increase in costs.

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Reslts statement from JK Tyres via ERJ