AAAAAAAAAAAAAAAAAAAAAAAAAAA

NT Bureau
Chennai, Feb 3:

        J K Industries Ltd (JKI), manufacturer of well-known tyre brands, has recorded a turnover of Rs 744 crore in its first quarter ended 31 December 2006. Profit after tax stood at Rs 8 crore, which has more than tripled from the corresponding quarter of the last year.

        Total sales rose by 14 per cent and operating profit (EBITDA) at Rs 52 crore at the end of first quarter, recording a growth of 35 per cent. JKI has achieved this performance through improvement in all parameters, aided by some respite in the prices of raw materials during this quarter. Cash earning per share for the quarter was Rs 10.12 and earning per share (EPS) was Rs 2.65 on a restructured capital.

        'With heavy investment in infrastructure and accelerated economic growth, road sector and tyre industry are the natural beneficiaries. Foreseeing the demand push, the company undertook an expansion of truck radial and passenger radial tyre capacity last year, the benefits of which will be derived in the current year,' said Raghupati Singhania, vice-chairman and managing director, JK Industries.

        The company has been expanding its Off the Road (OTR) tyre capacity in the recent past. Further expansion in the OTR capacity was underway in view of the growing potential in this segment. After the implementation of the restructured scheme, JKI was now fully focused on tyre as its sole business. It may be recalled, the company posted a turnover of Rs 2,971 crore for the year ended 30 September 2006, a growth of 24 per cent over the previous year. At the Board meeting held on Wednesday, a dividend of 25 per cent was recommended by its directors.