MRF stock price soars 6% after Q1FY25 profit jumps 55% QoQ

MRF shares in focus: Shares of MRF climbed as much as 5.80 per cent to hit an intraday high of Rs 1,42,485.10 per share on Thursday, August 8, 2024. 

The jump in the stock price came after the company’s profit zoomed 54.8 per cent quarter-on-quarter (Q-o-Q) to Rs 573.4 crore in the June quarter of FY24, from Rs 370.5 crore in Q4FY24.

However, the company’s profit dropped 5.95 per cent Y-o-Y from Rs 609.7 crore in the same quarter a year ago (Q1FY24).

The company’s revenue rose 13.3 per cent on a Q-o-Q basis to Rs 7,196.5 crore in Q1FY25, from Rs 6,349.4 crore in Q4FY24. On a Y-o-Y basis, the revenue rose 11.7 per cent from Rs 6,440.3 crore in Q1FY24.

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda) rose 2.6 per cent annually to Rs 1,159.6 crore in the June quarter of FY25, as against Rs 1,129.9 crore in the same quarter a year ago (Q1FY24).

Consequently, Ebitda margin stood at 16.11 per cent in Q1FY25, from 17.54 per cent in Q1FY24. 

Madras Rubber Factory Limited (MRF) is the flagship company of the MRF Group, specialising in tyre manufacturing. 

MRF produces a wide range of tyres for various vehicles, including passenger cars, two-wheelers, three-wheelers, off-the-road (OTR) vehicles, trucks, farm tractors, light commercial vehicles (LCVs), tubes and flaps, small commercial vehicles (SCVs), pickup trucks, medium commercial vehicles (MCVs), and intermediate commercial vehicles (ICVs). In addition to tyres, the company also manufactures sports goods, paints and coatings, pretreads, and children's puzzles, games, and toys through its Funskool brand.

MRF offers several services, including T&S, Tiretok, Tyredrome, MRF Fasst, Muscle Zone, and Midd. 

The market capitalisation of the company is Rs 59,841.43 crore, according to Bombay Stock Exchange (BSE). 

At 2:48 PM, shares of MRF were trading 5.01 per cent higher at Rs 1,41,413.95 per share. In comparison, BSE Sensex was trading 0.51 per cent lower at 79,060.42 levels.