MRF grows Q3 muscle with 191% on-year spike

Tyre maker MRF on Friday reported a 191% year-on-year (YoY) jump in its December quarter net profit at Rs 509.71 crore. The same stood at Rs 174.83 crore in the year-ago period.

The revenue from operations for the said quarter increased by 9% YoY to Rs 6,162.46 crore from Rs 5,644.55 crore reported by the company in the year-ago period.

MRF’s Board also declared a second interim dividend of Rs 3 per share for the financial year ending March 31, 2024. The company has fixed Wednesday, February 21, 2024, as the record date. The dividend will be paid on or after March 4, 2024, the company filing said.

However, on a sequential basis, the profit dipped by 13% and revenue by 0.53%.

The QoQ decline in quarterly profit was on higher expenses incurred by the company in the said quarter. The total expenses stood at Rs 5,557.67 crore versus Rs 5,497.21 crore in Q2FY24 and Rs 5,484.72 crore in Q3FY23. The expenses went up 11% QoQ and nearly 13 YoY.

On the standalone basis, the net profit stood at Rs 508 crore which was up 200% from Rs 169 crore posted in the year-ago period. Sequentially, it was down by 11% from Rs 572 crore in Q2FY24. The standalone revenue came in at Rs 6,048 crore, up 9% YoY as against Rs 5,535 crore in the year-ago quarter. On the QoQ basis, the revenue was down by 0.65%.

The consolidated debt-to-equity ratio for Q3FY24 was unchanged at 0.06 on a QoQ and YoY basis, the company filing said.

The net profit margin was reported at 8.17% in Q3FY24 up from 3.06% in the year ago period. However, it was lower on a QoQ basis from 9.33% reported in Q2FY24.

The earnings were announced during market hours and the stock fell 3.4% to the day’s low of Rs 137,639.10.

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Roy Walsh

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