MRF slips after Q2 PAT tumbles 20% YoY; declares interim dividend of Rs 3/share

MRF declined 1.75% to Rs 1,18,840.80 after the company's consolidated net profit declined 19.77% to Rs 470.70 crore despite 10.68% increase in revenue from operations to Rs 6,881.09 crore in Q2 FY25 over Q2 FY24.

Profit before tax (PBT) fell 20.17% YoY to Rs 631.18 crore during the quarter.

Total expenses jumped 15.75% YoY to Rs in Q2 FY25. Cost of material consumed stood at Rs 4,740.85 crore (up 26.46%), employee benefit expenses stood at Rs 477.75 crore ( up 7.71% YoY), finance cost was at Rs 83.78 crore (down 2.06% YoY) during the period under review.

On margin front, the tyre manufacturers operating margin contracted to 8.74% in Q2 FY25 as against 12.96% in Q2 FY24. Net profit margin reduced to 6.73% in Q2 FY25 from 9.33% in Q2 FY24.

Meanwhile, the companys board declared an interim dividend of Rs 3 per share for FY25. The company has fixed Tuesday, 19th November, 2024 as the record date for the purpose of payment of interim dividend. The interim dividend will be paid on or after 29th November 2024.

MRF is engaged in the manufacture of rubber products such as tyre, tubes, flaps, tread rubber and/or trading in rubber and rubber chemicals.

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