JK Tyre Reports INR 57 Crore Net Profit In Q3 FY25 Amid Rising Costs

Abhijeet Singh
05 Feb 2025
11:09 AM
1 Min Read

Company faces margin pressure but sees growth in replacement market.


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JK Tyre & Industries Ltd has reported a net profit of INR 57 crore for the third quarter of the financial year 2025. The company's unaudited results revealed consolidated revenues of INR 3,694 crore, with an EBITDA of INR 335 crore and an EBITDA margin of 9.1 per cent. The profit before tax stood at INR 80 crore, indicating a stable financial performance despite rising costs in the tyre industry. The company attributed its growth to strong demand in the replacement tyre market, even as raw material costs, particularly natural rubber prices, affected margins.

Dr Raghupati Singhania, Chairman and Managing Director, highlighted that while raw material inflation had put pressure on profitability, JK Tyre managed to offset some of the impact through selective price increases and cost optimisation. He expressed optimism about the future, stating that the replacement market demand remains strong and that the original equipment manufacturer (OEM) sector is showing signs of recovery. He also noted that export markets present new opportunities, especially with the current rupee-dollar exchange rate.

JK Tyre has focused on premiumising its product portfolio across different vehicle segments to improve profitability. The company's subsidiaries, Cavendish Industries Ltd and JK Tornel in Mexico, continued to contribute significantly to revenue and overall financial performance. As part of its digital transformation, the company recently launched a Digital & Analytics Centre of Excellence aimed at enhancing operational efficiency through data-driven strategies.

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