Falcon Tyres posts 300 pc growth in net profit

Kolkata, May 31: After coming to the fold of the Ruia group, Falcon Tyres Limited registered a growth of nearly 300 per cent in its net profit for 2005-06.

Falcon Tyres registered a net profit of Rs 3.63 crore as against Rs 92 lakh in 2004-05. The total turnover of the company for 2005-06 stood at 255.63 crore against Rs 219.86 crore in 2004-05.

In the last quarter of this financial year (Jan-Mar 06), the company earned a net profit of Rs 1.39 crore, 11 times more than the preceding year (Rs 12.61 lakh).

The company announced 25 per cent dividend for its shareholders, which was Rs 2.50 per share, the highest in its history.

The Ruia group had taken over Falcon Tyres in December 2005 along with two other companies, Dunlop India Limited and India Tyres&Rubber from Chhabria controlled Jumbo group.

Announcing the result, Mr Pawan Kumar Ruia, Chairman, Falcon Tyres said, '' The company has embarked on a Rs 60 crore expansion plan. The tyre manufacturing capacity is being raised from 5.5 lakh to 7.5 lakh per month and the tube manufacturing capacity is being raised from 3.5 lakh to 7.5 lakh per month. '' Mr Ruia also said the company was looking at Sumitomo for the latest technology in the two wheeler and three wheeler tyres segment.

Falcon Tyres, located in Mysore, Karnataka, was incorporated in 1973. Falcon manufactures and markets a wide range of two and three wheeler tyres under the DUNLOP brand and enjoys about 20 per cent market share in the two and three wheeler tyre segment.

UNI