New Delhi: JK Tyre & Industries on Tuesday said its consolidated profit after tax declined 75 per cent to Rs 57 crore in the December quarter, hit by rising raw material costs.
The company reported a profit after tax of Rs 227 crore in the October-December quarter of the last fiscal.
Revenue from operations declined to Rs 3,674 crore for the third quarter compared to Rs 3,688 crore in the year-ago period, JK Tyre said in a regulatory filing.
"Rising raw material cost, particularly in natural rubber impacted the margins, which was to an extent addressed by certain price revisions and cost optimisation," JK Tyre Chairman & Managing Director Raghupati Singhania said.
Looking ahead, demand in the replacement market is promising, and the OEM (original equipment manufacturer) sector is on a recovery path, he added.
Moreover, export markets offer new opportunities, given the rupee-dollar parity, Singhania said.
He noted that the tyre maker is focusing on premiumisation of its product range across segments, which will help profitability.
The company's subsidiaries, Cavendish Industries Ltd (CIL) and JK Tornel, Mexico, continued to make healthy contributions to the overall revenues and profitability of the company, Singhania said.
The company said its board has approved raising its stake in Treel Mobility Solutions, an associate company, to 66 per cent from 26 per cent.
Shares of JK Tyre ended 0.88 per cent higher at Rs 313.55 apiece on the BSE.