Ruia Group company Falcon Tyres has reported a gross turnover of Rs.844.35 crore in the 12 months ended September 30, 2010, against Rs.851.45 crore in the previous 18 months ended September 30, 2009. The net profit was Rs.51.63 crore (Rs.30.02 crore).
Monotona Tyres has become a subsidiary of Falcon Tyres from May this year.
The company board has recommended a dividend of 50 per cent for 2009-10 against 40 per cent for the previous 18 months.
Commenting on the annual results, Ruia Group Chairman Pawan K. Ruia said “the results reflect the company's achievement in four major areas — continuous capacity augmentation since takeover in December 2005, the benefit from the co-generation plant, better realisation because of increased presence in the replacement market, and effective cost-control and reduction in wastage.''
“However, the recent rise in input costs remains a concern. On our part we are trying our best to maintain the contribution part,” he added.
Falcon is now selling 10 lakh tyres and 11 lakh tubes a month.
Further capacity of five lakh tyres a month is being added to its Mysore plant, which is expected to be available by mid-2011. The capacity expansion will give Falcon more tubeless tyres every month.
A new plant at Haridwar in Uttarakhand, with a monthly capacity of five lakh tyres, is also expected to be operational next year.