JK Tyre and Industries (JK Tyre) on Thursday reported standalone net profit of Rs 21.14 crore for the third quarter ended December as compared to the net loss of Rs 21.31 crore in the same period previous year.
However, net sales of the company declined by 7.54 per cent to Rs 1,274 crore during the October-December quarter as compared to Rs 1,378 crore during the same period in 2011.
“It was indeed a challenging quarter for the auto industry with a depressed demand, particularly by the original equipment manufacturers, which impacted demand for tyres,” Raghupati Singhania, Vice Chairman and Managing Director, JK Tyre said.
He said the company’s improved profitability during the quarter as compared to the corresponding period was due to deeper penetration in the market, particularly in truck/ bus radials, despite the overall slowdown.
“The stable raw material prices during the quarter helped in containing costs. Additional radial tyre capacities recently created both for truck/ bus as well as passenger tyres will further cement JK Tyre’s radial leadership position,” he added.
The company’s shares closed at Rs 116.40 on the Bombay Stock Exchange on Thursday, up 1.75 per cent from the previous close.