JK Tyre & Industries on Wednesday said its consolidated net profit surged five-fold to Rs 249 crore for the September quarter, riding on a robust performance in the domestic market.
The company had reported a consolidated net profit of Rs 50 crore in the July-September period of the last fiscal.
Net revenues in the second quarter increased to Rs 3,905 crore from Rs 3,764 crore in the year-ago period.
"The sustained thrust on larger market presence enabled to boost volumes across segments and product categories," JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said in a statement.
The strategic focus on enrichment of product mix across the entire radial range across segments has had a positive outcome, he added.
"Cost compression and the ongoing efforts to enhance internal efficiencies remain the bedrock of our operations.
"We hope to continue with strong performance going forward as well owing to a robust economy in the country," Singhania said.
The company said its board has approved enhancing tyre manufacturing capacity by 19.45 per cent by October 2025.
JK Tyre currently has a manufacturing capacity of 155.11 lakh tyres per annum with a capacity utilisation of 95 per cent.
The company said it expects the project to entail an investment of Rs 1,025 crore. "The above project is proposed to be funded by way of equity/internal accruals and debt," it added.
The company said with the lndian auto industry expected to grow in the coming days, there is a need to increase market presence further in the tyre segment.
JK Tyre board approved to raise up to Rs 500 crore in one or more tranches by way of qualified institutions placement.
Shares of the company on Wednesday ended 1.27 per cent up at Rs 308.10 apiece on the BSE.