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Business News/ News / India/  MRF profit up fivefold to 572 crore in Sep quarter
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MRF profit up fivefold to ₹572 crore in Sep quarter

The higher profit came on the back of higher operating margins during the July-September period.

The profit figure missed Bloomberg analysts' estimate of ₹587.8 crore (Photo: Mint)Premium
The profit figure missed Bloomberg analysts' estimate of 587.8 crore (Photo: Mint)

Chennai-based tyre maker MRF Ltd on Friday reported a fivefold year-on-year (y-o-y) jump in net profit to 571.9 crore for the September quarter of FY2024 as compared to 123.9 crore in the same period last year.

The company’s board declared an interim dividend of 3 per equity share and fixed 17 November as the record date for the purpose of payment of the dividend.

The higher profit came on the back of higher operating margins during the July-September period, the financial results revealed.

The net profit, however, missed Bloomberg analysts’ estimate of 587.8 crore and on Friday, MRF stock fell as much as 2.5% to close at 107,723.25 apiece on NSE.

During the second quarter, which was mostly dominated by high crude oil prices, a key raw material for tyres, MRF’s revenue rose by 6% y-o-y to 6,087.56 crore as compared with 5,719 crore a year ago.

During the September quarter, MRF said its cost of materials consumed was about 10% lower at 3,715.28 crore as compared to 4,112.98 crore in the September quarter of last year.

MRF’s operating income (earnings before interest, taxes, depreciation, and amortization or Ebitda) rose 141% to 1,129 crore in the September quarter from 467.4 crore in the year ago period.

The Ebitda margin saw a massive 18.5% expansion during the September quarter, from 8.2% in Q2 of FY2023.

Expenses during the September quarter fell 4% to 5,383.7 crore as compared with 5,630.3 crore in the corresponding period last year.

MRF Ltd., according to a 27 July Hindu Business Line report, is working on new technologies to roll out a range of electric vehicle (EV) tyres.

“The company will address the challenges posed by the shift to electric and other vehicles. To cater to the EV market, technologies are being developed, and progress has been made," said KM Mammen, Chairman and Managing Director of the company, while responding to queries from shareholders during the 62nd annual general meeting of the company, said the report.

He said MRF’s EV tyres would come with ultra-low rolling resistance, good traction, wear resistance, and noise suppression, among others. With these properties in EV tyres, the company is confident of gaining a good foothold in the EV market.

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ABOUT THE AUTHOR
Mayur Bhalerao
"Mayur spearheads data-driven reporting on IPOs for Mint. He also covers market trends, and corporate announcements to ensure comprehensive coverage of the financial landscape. Mayur believes in harnessing the power of Bloomberg Terminal and Capital Line to extract and disseminate critical financial data to cross-functional teams within the newsroom and beyond. disseminate critical financial data to cross-functional teams within the newsroom and beyond."
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Published: 03 Nov 2023, 01:00 PM IST
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