JK Tyre Q3 net profit rises 24% to Rs 67 crore

New Delhi: JK Tyre & Industries on Friday reported a 24 per cent rise in its consolidated net profit to Rs 67 crore for the third quarter ended December 2022.

The company had reported a net profit of Rs 54 crore in the October-December quarter of the previous fiscal.

Its total income increased to Rs 3,623 crore in the third quarter against Rs 3,084 crore in the same period last year, JK Tyre & Industries said in a regulatory filing.

The company's board, which met on Friday, approved raising up to Rs 240 crore through the issue of securities.

The board has approved the issuance of 24,000 compulsorily convertible debentures to the International Finance Corporation by way of a preferential issue on a private placement basis for raising an amount aggregating up to Rs 240 crore, it said.

Commenting on the third quarter results, JK Tyre Chairman and Managing Director Raghupati Singhania said: "We continued to maintain our profitability growth in yet another quarter with strong performance across the segments with double-digit revenue growth".

The profit margins improved due to softening in raw material prices, continued focus on cost control and timely price revisions, he added.

"Going forward, we believe, the tyre industry is set to witness healthy demand in the domestic market emanating from improved vehicle utilisation and thrust on infrastructural development," Singhania stated.

Cavendish Industries and JK Tornel, Mexico -- subsidiaries of the company -- continue to contribute well to the robust growth of the company, he added.

Shares of the company on Friday ended 1.36 per cent up at Rs 167.60 apiece on the BSE.