JK Tyre and Industries Ltd.'s net profit for the second quarter rose by about five times, beating analysts' estimates, amid a decline in expenses. The company's net profit increased 401.1 per cent year-on-year to Rs. 248.6 crore in the quarter ended September, according to an exchange filing on Wednesday. That compares with the Rs. 203.4 crore consensus estimate of analysts tracked by Bloomberg.

The company approved the expansion of the tyre manufacturing capacity for an investment of Rs. 1,025 crore. As the Indian auto industry is witnessing growth, which is expected to continue for some time, it is an opportunity to increase the company's market presence further in the automotive tyre market, it said in its exchange filing.

With this decision, the manufacturing capacity of the tyre manufacturer will increase by 19.45 per cent, while it has an existing capacity utilization of 95 per cent. The approved project is proposed to be funded by way of equity or internal accruals and debt, the statement said.

The tyre manufacturer's board also approved raising Rs. 500 crore, in one or more tranches through qualified institutional placement. Shares of JK Tyre and Industries closed 1.87 per cent higher at Rs. 310 a piece, as compared with a 0.47 per cent decline in the benchmark Nifty 50.