Falcon profit up 41%

Falcon Tyre, the flagship company of city-based Ruia Group, has reported a 41.4 per cent growth in net profit for the July-September quarter at Rs 17.22 crore against Rs 12.17 crore in the same period last year. 

The company, which makes two and three-wheeler tyres under the Dunlop brand, posted robust growth in sales.  Income from operations went up 55.9 per cent to Rs 221.02 crore compared with Rs 141.71 crore in the year-ago period.  On a standalone basis, net profit for the year rose 71 percent to Rs 51.63 crore from Rs 30.23 crore last year. Falcon follows the October to September fiscal calendar. 

Net sales stood at Rs 788.1 crore compared with Rs 551.07 crore in the previous fiscal, recording a 43 per cent rise. The company announced a 50 per cent dividend for the year. Pawan K. Ruia, chairman of Ruia Group, attributed the performance to capacity augmentation, better realisation because of increased presence in the replacement market, effective cost control and reduction in wastage.

He said further capacity of 500,000 tyres per month was being added to the Mysore plant. It is expected to be ready by mid-2011. A new plant at Hardwar, Uttarakhand, with a monthly capacity of 500,000 tyres is also expected to be operational next year.

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