JK Tyre -; Industries to invest Rs 1,100 crore in increasing production capacity over 2 years

3 Nov 2022 , 12:28 PM

With consumer demand soaring in rural and semi-urban regions throughout the holiday season, JK Tyre & Industries is on track to invest Rs1100 crore over the next two years to increase production capacity.

“While globally there are concerns that may slow down growth in overseas markets, there is a buoyancy in demand here,” Anuj Kathuria, President (India), JK Tyre & Industries, told ET. Sales have gotten a boost from the holiday season, especially in rural and semi-urban regions. We are preparing for increased levels of production with regular monsoons and a growing rural economy.

For the second quarter ending September 30, 2022, JK Tyre & Industries reported a 23% fall in net profit to Rs 50 crore. However, overall revenue climbed to Rs3,764 crore in the reviewed period from Rs2,998 crore in Q2FY22. The company’s operational margins increased as a result of favourable market circumstances.

Due to improved economic activity and increased government spending on infrastructure projects, the company anticipates that demand in the domestic market will continue robust moving forward.

With some easing witnessed in pricing last quarter, pressures from the unheard-of rise in raw material costs – seen in the prior seven quarters – are also anticipated to ease off moving forward.

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