MUMBAI, Aug 15: Govind Rubber Ltd (GRL) today said its profitability for the first quarter in 2012-13 has jumped by 248 per cent over the same period last year.
For the quarter ended on June 2012, net sales of the company stood at Rs 78.23 crore compared to Rs 57.68 crore for the same period last year.
Its Profit After Tax (PAT) shot up to Rs 1.01 crore compared to Rs 29 lakhs for the corresponding period last year. The improved performance was mainly due to better product mix, it said.
The company expects better profitability in the quarters to come due to softening of rubber prices, which will be a major contributing factor coupled with other avenues explored by the company, GRL Chairman & Managing Director Vinod Poddar said in a statement here.
GRL has four manufacturing plants. At Ludhiana, the company is expanding its range of 2 and 3 wheelers tyres and tubes and exploring avenues for export of these tyres to African countries. After expansion, auto tyre business as a standalone entity will fetch a turnover of Rs 100 crore, Poddar said.
At its Alwar-Rajasthan plant, which has been recently acquired, the company proposes to invest Rs 120 crore for the first phase to reach a capacity of 100 tonne per day.
GRL will set up a greenfield project at Dahej, Gujarat with a capital outlay of Rs 1,000 crore, thereby creating a production capacity of 225 tonne speciality tyres per day.
As part of the global expansion plans, Govind Rubber has entered into a joint venture for manufacturing highly specialised rubber by setting up a plant at Busan in South Korea.
GRL aims to sell its products in Korea, Indonesia, Vietnam, China and India and envisages turnover Rs 150 crore turnover in 2 years from the project, the release said. (PTI)
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