Falcon registers 26% growth, reports Rs3.96 cr net profit

Kolkata, Jun 28 (UNI) Falcon Tyres Ltd, a Ruia Group company, has reported a net profit of Rs 3.96 crore in 2006-07, slightly higher than the corresponding period in the previous year, which was Rs 3.62 crore.

Ruia Group Chairman Pawan Kumar Ruia said, "Falcon is in the process of broadening its product range. The Company has already signed a Technical Aid Agreement with Sumitomo Rubber Industries of Japan for providing technical know-how for two-wheeler tyres.'' Elaborating about the results, he said the company has recorded a growth of 25.8 per cent in its income, registering a turnover of Rs 321.78 crore in2006-07 against Rs 255.63 crore.

The operating profit of the company went up by 30 per cent to Rs 12.52 crore in 2006-07 from Rs 9.58 crore in 2005-06.

The board of directors of Falcon Tyres has recommended a dividend of 30 per cent to its shareholders. Last year Falcon Tyres, listed with BSE and other stock exchanges, had paid 25 per cent dividend to its shareholders.

Falcon Tyres Ltd, manufacturer of tyres for two and three wheeler vehicles, was acquired by the Ruia Group in December 2005 from the Jumbo Group.

Since then an investment programme of Rs 70 crore was being implemented towards introduction of state-of-the-art technology and augmentation of capacity at its Mysore plant. By the end of the second quarter of FY 07-08, Falcon is slated to produce 7.5 lakh tyres a month from the current level of 6 lakh tyres a month.

Mr Ruia, however, expressed concern at the sluggish growth of demand from the two-wheeler manufacturing sector. He said "The company will have to shift its focus gradually from the OEMs to the replacement segment.'' UNI