Softening raw material prices and focus on the after-market have contributed to TVS Srichakra Ltd nearly trebling its net profit during the first quarter of the current year.
The manufacturer of two-wheeler tyres branded TVS TYRES has reported a net profit of ₹48.97 crore (₹17.26 crore) on a total income of ₹503.57 crore (₹451 crore) for the quarter ended June 30, 2015. Finance costs have dropped to ₹5.16 crore (₹9.98 crore).
P Vijayaraghavan, Director, TVS Srichakra, said overall improved sales, including to OEMs and after-market, reduction in material cost and interest cost through better working capital management have contributed to the performance.
The TVS Group company with a capacity of about 2 million tyres a month will increase its production to 2.3 million tyres by November. The expansion will happen across both its facilities in Tamil Nadu and Uttarakhand, he said.
Published on August 14, 2015
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