New Delhi, February 4, 2025 – JK Tyre & Industries Ltd. (NSE: JKTYRE | BSE: 530007), a leading player in the Indian tyre industry, has announced its unaudited financial results for the third quarter of the fiscal year 2025 (Q3FY25), reporting a consolidated net profit of ₹57 crore.
Key Financial Highlights (Consolidated)
| Particulars | Q3FY25 (₹ Crore) |
|---|
| Revenue from Operations | 3,694 |
| EBITDA | 335 |
| EBITDA Margin | 9.1% |
| Profit Before Tax (PBT) | 80 |
| Profit After Tax (PAT) | 57 |
Standalone Performance
| Particulars | Q3FY25 (₹ Crore) |
|---|
| Revenue from Operations | 2,495.64 |
| EBITDA | 203.01 |
| Profit Before Tax (PBT) | 64.00 |
| Profit After Tax (PAT) | 46.36 |
The standalone results reflect a stable performance, supported by strong demand in the replacement market.
Segment-Wise Revenue Performance
| Segment | Q3FY25 Revenue (₹ Crore) |
|---|
| India | 3,263.71 |
| Mexico | 506.82 |
| Others | 0.31 |
| Total Revenue | 3,770.84 |
| Inter-Segment Sales | (97.16) |
| Net Revenue from Operations | 3,673.68 |
The domestic market remains the key revenue driver, contributing over 88% to the overall revenue.
Key Financial Ratios
| Financial Metric | Q3FY25 |
|---|
| Debt-Equity Ratio | 1.09 |
| EBITDA Margin | 9.06% |
| Net Profit Margin | 1.42% |
| Current Ratio | 1.28 |
| Interest Coverage Ratio | 2.78 |
The company has maintained a balanced debt-equity ratio and strong liquidity levels.
Management Commentary
Dr. Raghupati Singhania, Chairman & Managing Director, commented:
“JK Tyre witnessed a healthy growth in the replacement market during the quarter. Rising raw material costs, particularly in natural rubber, impacted margins, which were partially offset by price revisions and cost optimizations. Looking ahead, demand in the replacement market remains strong, and the OEM sector is recovering. Export markets also present new opportunities, considering the Rupee/Dollar parity.”
JK Tyre is also focusing on
premiumization of its product range across segments, which is expected to contribute positively to profitability.
Strategic Initiatives & Announcements
- Sustainability Focus:
- JK Tyre became the first Indian tyre company to secure a Sustainability Linked Loan (SLL) with IFC.
- The company aims to achieve 100% renewable electricity by 2050 under the global RE100 Club.
- Digital Transformation:
- Launched a Digital & Analytics Centre of Excellence (DnA COE) to enhance operational efficiencies and innovation.
- Recognition & Awards:
- "Best in Class" ESG rating from CareEdge for the second consecutive year.
- Recognized among India’s Top 30 Most Sustainable Companies by Business World.
Litigation & Regulatory Updates
- CCI Investigation:
The Competition Commission of India (CCI) had imposed a penalty of ₹309.95 crore on JK Tyre in 2018 for alleged cartelization. However, following an appeal, the National Company Law Appellate Tribunal (NCLAT) remanded the case back to the CCI for re-examination. The matter is now pending before the Supreme Court of India. The company remains confident of a favorable outcome and has not made any provisions for the penalty in its financial statements.
Outlook
- Growth Drivers:
- Strong Replacement Demand
- OEM Sector Recovery
- Export Market Expansion
- Challenges:
- Raw Material Price Volatility
- Global Economic Uncertainty
The company remains optimistic about long-term growth, supported by strategic investments and a focus on premium and sustainable products.
Stock Performance & Investor Confidence
With its steady financial performance and strong ESG credentials, JK Tyre continues to gain investor confidence. The company’s
Commercial Papers worth ₹200 crore remain outstanding and are not due for repayment as of December 31, 2024.
Conclusion
JK Tyre has demonstrated resilience in Q3FY25, leveraging market demand and operational efficiencies to sustain profitability. With a
strategic focus on digital transformation, sustainability, and premiumization, the company is well-positioned for future growth.
