MRF Q2 profit soars 5x to ₹572 cr, announces dividend

MUMBAI – Tyre maker MRF on Friday reported a stellar growth in the net profit for the September 2023 quarter, as the bottomline surged nearly five times year-on-year (YoY) to Rs 572 crore. Revenue from operations grew by 6.5% YoY to Rs 6,088 crore.

The board has recommended an interim dividend payout of Rs 3 per share, and fixed November 17 as the record date for the same.

The robust growth in net profit despite moderate revenue growth was on the back of a stark improvement in operational performance.

The tyre maker’s earnings before interest, taxes, depreciation and amortization or EBITDA for the quarter rose more than twofold on year to Rs 1,129.09 crore. As a result, the operating margin expanded by a staggering 1,038 basis points to 18.55%.

A fall in the input cost, which makes for a lion’s share of the total expenses, aided the growth in EBITDA. Raw material costs declined by nearly 10% YoY to Rs 3,715.28 crore.

The net profit margin for the quarter expanded to 9.29% from 2.14% a year ago.

The net tax outgo for the quarter was sharply higher at Rs 201.53 crore compared to Rs 41 crore a year ago.

The debt-to-equity ratio was 0.06 times as of September end, compared to 0.08 times a year ago, and 0.07 times a quarter ago.

For the six months ended September, MRF reported a 10% growth in revenue to Rs 12,410.84 crore. Net profit surged by nearly fivefold to Rs 1,153.38 crore. EBITDA for the period stood at Rs 2,243 crore, compared to Rs 946 crore a year ago.

Post the earnings announcement, shares of MRF were trading nearly 2% down on the National Stock Exchange at Rs 1,08,440.

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

Roy Walsh

Related post