JK Tyre says to raise prices by 3-4 pct in June

NEW DELHI, May 25 (Reuters) - JK Tyre and Industries (JKIN.BO: Quote, Profile, Research) plans to increase prices of its products by 3-4 percent in June, on surging costs of raw material, especially rubber, Managing Director Raghupati Singhania said on Tuesday.

The firm has already raised prices by 5 percent since January.

It expects 30-35 percent revenue growth in FY11 as vehicle sales boom, but profitability may be under pressure due to the rise in raw material prices, Arun K Bajoria, president, said.

Natural rubber makes up over 40 percent of the cost of a tyre. It has risen 21.5 percent to 16,900 rupees per 100 kilograms so far this year.

Earlier on Tuesday JK Tyre had reported an 82 percent rise in Jan-March net profit to 255 million rupees. Its quarterly net sales rose to 11.3 billion rupees from 9.26 billion rupees.

JK Tyre shares ended down 1.74 percent at 177.75 rupees in a weak Mumbai market.

(in.reuters.com)