 "MRF Q3 results: Net profit drops 35%, revenue up 14%, dividend announced")
Tyre maker MRF Ltd on Thursday reported a 34.5 per cent decline in consolidated net profit at Rs 330.27 crore for the third quarter (Q3) of the financial year 2024-25 (FY25), compared to Rs 503.94 crore reported during the same period last year. Profits may have been impacted due to higher rubber prices.
Additionally, total vehicle sales in India rose just 3.1 per cent year-on-year (Y-o-Y) in Q3FY25, compared to 19.5 per cent growth in the same quarter last year, affecting tyre manufacturers like MRF, which rely on auto sales for a major portion of revenue.
Consolidated revenue from operations, however, went up by 13.6 per cent year-on-year (Y-o-Y) to Rs 7,000.82 crore from Rs 6,162.46 crore. Total expenses also surged 20.6 per cent, primarily due to a 23.8 per cent rise in raw material costs to Rs 4,634 crore. ALSO READ: SBI Q3 results: Net profit rises 84% YoY to Rs 16,891 crore, NII up 4%
The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) fell 21 per cent Y-o-Y to Rs 835 crore in Q3FY25 from Rs 1,055 crore in the year-ago period. The Ebitda margin contracted to 11.93 per cent, down from 17.12 per cent in Q3FY24.
MRF Q3: Dividend announced
The board of directors announced a second interim dividend of Rs 3 per equity share (30 per cent) for the financial year ending March 31, 2025. The record date for determining eligible shareholders will be Friday, February 14, 2025. The dividend will be paid on or after Tuesday, February 25, 2025. ALSO READ: Trent Q3 results: Net profit rises 34% to Rs 497 crore, revenue up 34.3%
Shares of MRF were trading at Rs 1,11,763.55 on the BSE, down nearly 3 per cent at 1 pm after the Q3FY25 financial results were released. The stock’s 52-week high stands at Rs 1,51,445, while the 52-week low is Rs 1.1 lakh. The company’s market capitalisation is Rs 47,374 crore.