More Stories

Informist, Thursday, Aug 8, 2024

 

--MRF Apr-Jun net profit 5.63 bln rupees 

--Analysts saw MRF Apr-Jun net profit 4.69 bln rupees 

--MRF Apr-Jun net profit 5.63 bln rupees vs 5.81 bln 

--MRF Apr-Jun revenue 70.78 bln rupees vs 63.23 bln 

 

By Darshan Nakhwa

 

MUMBAI – Tyre manufacturer MRF Ltd today reported better-than-expected numbers for the June quarter, with year-on-year growth recorded in few earnings metrics, except for the bottomline and the operating margin. The company's net profit fell 3.3% on year to 5.63 bln rupees, beating analysts' estimate of 4.69 bln rupees. Higher input costs and freight expenses are likely to have weighed on the company's bottomline for Apr-Jun. 

 

The Chennai-headquartered company's earnings before interest, tax, depreciation and amortisation margin contracted to 16.1% in Apr-Jun, from 17.6% in the year-ago period, as per Informist calculations. Factors such as higher rubber prices, costs related to employees and other expenses are likely to have impacted its margin. 

 

In Apr-Jun, the company's EBITDA, also known as cash operating profit, came in at 11.38 bln rupees against 11.14 bln rupees in the year-ago period, as per Informist calculations. Brokerage firms expected the EBIDTA to be between 9.68 bln rupees and 10.65 bln rupees. 

 

In the June quarter, MRF's overall expenses grew faster than revenue from operations. Its total expenses grew 14.1% on year to 64.10 bln rupees, led by an increase in the cost of materials consumed and other expenses. Cost of materials consumed--the biggest expense incurred by the company--rose nearly 16.1% on year to 43.19 bln rupees. Its other expenses rose nearly 13.7% to 10.55 bln rupees and costs related to employees rose 7.5% on year to 4.44 bln rupees. The company's tax outgo for the June quarter was 1.88 bln rupees, compared with 1.97 bln rupees in the year-ago period.  

 

Compared with the slightly over 14% growth in expenses, the tyremaker's topline for the quarter rose 11.9% on year to 70.78 bln rupees. Brokerages had estimated MRF's topline at 66.91 bln rupees, driven by an uptick in two-wheeler tyre sales to manufacturers, and replacement demand for passenger car, truck and bus tyres. 

 

MRF is the country's largest tyre manufacturer and makes tyres for two-wheelers, passenger cars, trucks, buses, and all other heavy vehicles. The company did not disclose tyre sales volume data or provide the quantum of the price hikes taken in Apr-Jun in its earnings press release.   

 

The company reported strong growth in all earnings metrics against Jan-Mar. Its topline was up 14% from 62.15 bln rupees in the March quarter, and bottomline jumped by 48.2% from 3.80 bln rupees. The company's EBITDA rose 28.6% from 8.85 bln rupees in Jan-Mar, and its margin expanded by 190 basis points from 14.2% in the last quarter, as per Informist calculations. Analysts had projected the company to report healthy financial performance on a sequential basis.

 

Today, MRF's stock closed 4.3% higher at 140,391.55 rupees on the National Stock Exchange. The company announced its Apr-Jun results during the market hours.

 

Among tyre manufacturers, so far, MRF, CEAT, Apollo Tyres and JK Tyre and Industries have disclosed their June quarter earnings. Apollo Tyres consolidated net profit for the June quarter fell 23.9% year-on-year to 3.02 bln rupees, but the topline rose 1.5% to 63.35 bln rupees. CEAT reported a on-year decline of 6.4% in net profit to 1.49 bln rupees, but its topline rose 8.5% to 31.68 bln rupees. On other hand, JK Tyre's bottomline grew by nearly 38% to 2.11 bln rupees, even as its topline fell 2.1% on year to 36.39 bln rupees.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.