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Drop in rubber prices, focus on the after-market and cost control have contributed to TVS Srichakra’s net profit growing by 56 per cent on a standalone basis during the fourth quarter of 2014-15.
For the quarter ended March 31, 2015, the company reported a net profit of ₹34 crore on a total income of ₹464.98 crore against the comparable period in the previous year when the company reported a net profit of ₹21.69 crore on an income of ₹ 456.79 crore.
For the year ended March 31, 2015, the company more than doubled its net profit to ₹103.79 crore (₹47.45 crore) on a total income of ₹1,896 crore (₹1,671 crore) on a standalone basis.
P Vijayaraghavan, Director, TVS Srichakra, the largest supplier of two-wheeler tyres to OEMs, said the company is investing over ₹150 crore to expand its production capacity to 2.3 million tyres a month from the present two million.
The additional capacity spread across two plants in Madurai and Rudrapur will be available by the year-end.
Its product range also includes off-road tyres for construction and agriculture equipment and tractors and the expansion will add to the output across its range.
Apart from OEM sales, the company is also expanding its presence in the after-market, he said while declining to give details.
After-market offers higher realisations as compared with OEM supply, he said.
On a consolidated basis for 2014-15, the company has reported a net profit of ₹99.63 crore (₹56.58 crore) on a total income of ₹2,176.43 crore (₹1,937.51 crore).
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