Falcon Tyres triples net profit on higher sales

Bangalore, India - Profits at indian tyre maker Falcon Tyres Ltd have soared since the company was acquired by the Ruia brothers in December last year. In the 12 months to March 2006 the company reported huge increases in operating profit, pre-tax profit and net profit on sales just 10 percent up on the previous year.

In the final three months of the year (Jan - March 2006) - when the new management was in charge - sales grew 30 percent - as did raw materials costs - while net profit increased by a factor of 10, to Rs 13.9 million (€236 000).

For the 12 months, the company reported sales of Rs 2556 million (€43.5 million), up from Rs 2199 million a year earlier. Raw material expenditure was Rs1446 million (2005: 1196 million). Operating profit (EBITDA) was Rs 95.8 million compared with Rs 54 million and Pre-tax profit was Rs51.2 million, up from Rs15.6 million.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Website of Falcon Tyres

Download Annual results statement (22 kb .PDF file)

Falcon Tyres profit up 300% Business Standard (India)