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BENGALURU  - India's JK Tyre & Industries on Friday reported a more than 15% jump in third-quarter profit led by easing raw material prices and a strong demand for vehicles. Consolidated net profit rose to 655.9 million Indian rupees ($8.01 million) for the quarter ended Dec. 31. "Our profit margins improved, supported by softening in raw material prices, continued focus on cost control and timely price revisions." Chairman and Managing Director Raghupati Singhania said in a statement.

Tyre companies have been relying on price hikes to offset the surging input costs that hit margins.

Total expenses rose nearly 17% to 34.96 bln rupees.

"We believe the tyre industry is set to witness healthy demand in the domestic market emanating from improved vehicle utilization and thrust on infrastructural development," CMD Singhania said.

Strong demand for passenger cars and commercial vehicles has boosted tyre sales in the country. Sales of cars, bikes, and trucks jumped 23% last quarter due to holiday demand and better availability of chips, per the Society of Indian Automobile Manufacturers.

JK Tyre, which counts Maruti Suzuki India Ltd and Tata Motors Ltd as its customers, reported an 18% jump in revenue from operations to 36.13 billion rupees.

Rivals CEAT Ltd and Apollo Tyres Ltd had reported strong results thus far, led by the demand from original equipment makers and price increases. Ahead of the earnings, JK Tyre shares closed up 1.7%. The shares soared 32% last year.