Highlights of the call are:

• JK Tyre and Industries has reported faded set of results for the quarter ended December 2010 with 75% dip in the Net Profit at Rs 9.14 crore over strong 47% increase in the topline at Rs 1178.50 crore. OPM declined sharply by 680 bps on the back of spike in the rubber cost in quarter under review, there by pulling down profits.
• Rubber prices continues to rise in the YTDFY11 burdening the industry to shed their Operating margins. The average rubber cost stood at Rs 194 per Kg in quarter under review against Rs 176.5 per Kg in the quarter ended September 2010. The company has inventory of 30-40 days at end of December 2010.
• The company has taken 3.5% - 4% of price hike in its basket of products effective from 15 January 2010.
• The expansion of T&B radial tyres at Vikrant facility by 2 million Tyres to 10 million tyres will be expected to complete by end of June 2011 while that of Green field Chennai plant will be completed by end of February 2012.
• The company has witnessed continued demand particularly for radial tyres both in the T&B and passenger car tyres – driven by impressive sales growth by over 20% of passenger and commercial vehicle during YTDFY11. The radialization of T&B tyres stood at 17.8% in quarter under review against 17.4% in quarter ended September 2010.
• The T&B growth in replacement market was 8% during the quarter ended December 2010. The market share of radial T&B tyres replacement market is to the tune of 66%.
• With the current capacity of 738 tons per day, the company has production of 686 tons per day in the quarter ended December 2010. This represents capacity utilization of 93% during the quarter under review. Management expects to have capacity utilization of 95% in quarter ended March 2011.
• The total capex for expansion of Vikrant facility (expansion of 2 million T&B radial tyres to 10 million tyres at capex of Rs 155 crore) and Chennai facility (with capex of Rs 1015 crore). The company has incurred capex of Rs 175 crore in YTD FY11. However, capex for Q4FY11 is to the tune of Rs 500 crore.
• The company has tied up for long term borrowing at 9% fixed rate for 1 year 9.5% for next 2 years and the rest at floating rate of interest. It has not still availed the borrowing for the capex.
• The company's subsidiary Tornel has reported Net sales of USD 250 million and PBT of 2.5 million USD for the year ended December 2010.