New Delhi, May 28 : JK Tyre and Industries Wednesday reported a 29.37 percent rise in its net profit at Rs. 263.02 crore for the year ended March 31, 2014.

The company posted an operating profit of Rs. 890 crore for the fiscal under review posting an year-on-year increase of 41 percent.

The company's turnover in the period grew by nine percent at Rs. 8,279 crore.

Commenting on the figures, chairman and managing director of JK Tyre Raghupati Singhania said the company has performed well despite a subdued demand for tyres.

"Commercial vehicle production declined and even passenger cars recorded a negative growth, first time ever in the decade. This led to subdued demand for tyres,"

"To combat the sluggish market conditions, JK Tyre undertook several strategic actions by renewing its thrust in the replacement market as also adding new OEMs (original equipment manufacturer). Aggressive efforts resulted in export recording a 23 percent increase during the year."

He added that widening of customer base has helped JK Tyre maintain a healthy performance.

The company further reported that its board of directors have recommended a dividend of 50 percent on equity shares. The decision will come up for shareholders approval at the forthcoming annual general meeting (AGM), to be held later this year.

For the fourth quarter of last fiscal the company reported 12 percent higher turnover of Rs. 2,081 crore.

However, the net profit for the quarter under review was down 23.72 percent at Rs. 45 crore from Rs. 59.03 crore earned during the corresponding quarter of previous fiscal.

The company added that it has undertaken a major expansion at an outlay of Rs. 1,430 crore to add capacities in the TBR (truck bus radial) and PCR (passenger car radial) categories at Chennai Tyre Plant. The expansion is slated for completion in phases by early 2016. (IANS)