JK Tyre rises 4% on deal with Kia Motors

NEW DELHI: Shares of JK Tyre advanced 4 per cent in Tuesday's trade after the company said it will supply radial tyres to Korean automaker Kia Motors India for the compact SUV Seltos.

Under the supply contract, JK Tyre will provide its UX Royale 215/60 R17 radial tyre to Kia, the company said in a release.

Following the development, the stock rose 3.71 per cent to hit a high of Rs 83.70 on BSE.

“We are extremely excited about this partnership with Kia Motors India for their much acclaimed car Seltos. Through this collaboration, we endeavour to provide the highest quality tyres with innovative features," said VK Misra, Technical Director, JK Tyre & Industries.

"We are keenly optimistic that this association will further strengthen our market presence and we look forward to a continued and reinforced partnership with Kia Motors," Misra said.

The company has reported revenues of Rs 2,274.84 crore for the September quarter compared with Rs 2,154.95 crore in the year-ago period.

Consolidated net profit for the company declined 34.59 per cent to Rs109.68 crore for the quarter ended September. The company had posted a net profit of Rs 167.7 crore in the July-September period of previous fiscal.