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Informist, Wednesday, May 7, 2025

 

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--MRF to pay INR 229 per share final dividend 
--MRF Jan-Mar net profit INR 4.98 bln 
--Analysts saw MRF Jan-Mar net profit INR 3.55 bln 
--MRF Jan-Mar net profit INR 4.98 bln vs INR 3.80 bln year ago 
--MRF FY25 net profit INR 18.23 bln vs INR 20.41 bln year ago 
--MRF Jan-Mar revenue INR 69.44 bln vs INR 62.15 bln year ago 
--MRF FY25 revenue INR 276.65 bln vs INR 246.74 bln year ago 
--MRF Jan-Mar operating margin 8.81% vs 8.07% year ago 
--MRF Jan-Mar raw material cost INR 46.80 bln vs INR 38.71 bln year ago 
 

 

By Ishaan Sharma

 

MUMBAI — Tyre manufacturer MRF Ltd. surpassed expectations for the March quarter and reported a year-on-year rise in its net profit after four quarters of decline. Its net profit in the March quarter rose 31% on year to INR 4.98 billion, beating analysts' estimate of INR 3.55 billion. The net profit was also the highest in three quarters. 

 

The Chennai-based company's revenue from operations for the quarter was slightly below expectations at INR 69.44 billion, up nearly 12% on year. Brokerages had estimated its top line at INR 70.14 billion, driven by an uptick in two-wheeler and passenger car radial tyre replacement segments, gains in market share due to aggressive pricing strategy and price cuts undertaken last year.

 

Sequentially, the company's top line was marginally up, while its bottom line jumped 62%. MRF is the country's largest tyre manufacturer and makes tyres for two-wheelers, passenger cars, trucks, buses, and all other heavy vehicles.

For 2024-25 (Apr-Mar), the net profit of the company was down 10% on year at INR 18.23 billion. It had reported INR 20.41 billion net profit in FY24. Revenue from operations for FY25 was up 12% at INR 276.65 billion from INR 246.74 billion. New launches in various categories such as passenger vehicles, motorcycles, trucks, and light commercial vehicles supported sales growth, the company said in a press release. Further, all its market segments including replacement, institutional, and export, recorded significant growth. The company's consolidated exports in FY25 were INR 23.21 billion compared with INR 18.87 billion a year ago.

Cost of materials consumed rose around 21% on year to INR 46.80 billion for the latest quarter due to an increase in input costs. The company's operating margin rose marignally to 8.8% for the March quarter. Total expenses rose 10.5% to INR 64.10 billion from INR 57.99 billion a year ago. Raw material costs marginally softened from the December quarter, but this was partially offset by the rupee depreciating against the dollar, the company said. 

 

The company will pay a final dividend of INR 229 per share for FY25. MRF's shares closed at INR 140,420 on the National Stock Exchange, up 4?ter the earnings.  End

 

Edited by Tanima Banerjee

 

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