Indian tyre industry major, JK Tyre & Industries (JK Tyre), on Tuesday reported a consolidated net profit of ₹227.07 crore for the third quarter, up 240 per cent year on year compared with ₹66.75 crore in the corresponding period of the previous fiscal.

Consolidated revenue grew 1.79 per cent to ₹3,687.72 crore (₹3,612.92 crore).

Based on the performance of the company, the Board has declared an interim dividend of ₹1 per equity share (50 per cent) having face value of ₹2 per share, the company said.

“At JK Tyre, we remain committed to achieving profitable growth centred on product premiumisation, volume expansion, and optimising our product mix. The demand outlook remains optimistic, driven by the strong momentum in economic activity and positive consumer sentiments, across product categories,” Raghupati Singhania, Chairman and Managing Director, JK Tyre, said.

However, the global demand scenario is still challenging due to geo-political disturbances affecting exports during the quarter, he said.

Role of subsidiaries

Highlighting the significant contributions of subsidiaries, namely Cavendish Industries (CIL) and JK Tornel, Mexico, Singhania acknowledged their role in bolstering the company’s overall revenues and profitability.

“We have successfully raised ₹500 crore through a QIP in December 2023, which received an overwhelming response from investors, reinforcing investor’s confidence in JK Tyre’s growth story,” he added.

Meanwhile, the company also announced that the Board has approved investment in 50,000 equity shares of Renew Wind Energy at the rate of ₹240 per share of ₹10 each, including premium of ₹194 per equity share.

After the investment, JK Tyre’s shareholding in Renew Wind Energy will increase to 65,700 equity shares (from 4.35 per cent to 18.22 per cent).

Shares of JK Tyre closed at ₹535.35 apiece on the BSE on Tuesday, up 0.59 per cent.