More Stories

Informist, Tuesday, Aug. 12, 2025

MUMBAI – MRF Ltd.'s bottom line for the June quarter came in lower than the Street's view and its top line grew slowest in seven quarters on a year-on-year basis. This was despite a slowdown in growth of total expenses, which was the lowest in five quarters. Its operating margin also contracted during the June quarter both sequentially and on-year basis.

The company's shares traded 0.3% lower but as soon as the results were declared, the share prices fell over 2%. However, later the stock came off lows and at 1308 IST, shares of the tyre-maker traded 0.6% lower at INR 141,315. 

The company reported a net profit of INR 4.84 billion which is 14% lower than INR 5.63 billion reported an year ago. This came in lower than all the three brokerages estimates available with Informist. The lowest estimate was INR 5.08 billion, which was given by Motilal Oswal Financial Services Ltd. 

The company's revenue from operations rose nearly 7% on year to INR 75.60 billion. This was lower than INR 77.08 billion estimated by Anand Rathi Share and Stock Brokers Ltd. but higher than INR 73.61 billion expected by Motilal Oswal. Its overall topline was INR 76.86 billion, up 7.3% on year, which included other income of INR 1.25 billion. The other income jumped 52% on year. 

The tyre manufacturing compay's total expenses for the June quarter rose around 10% on year to INR 70.35 billion. This was mainly because the company accounted for the expenses of inventories, which more than tripled during the quarter. The inventory-related expenses for the quarter under review was INR 3.61 billion against INR 1.14 billion a year ago. Its raw material costs, which made over 65% of total expenses, rose over 6% on year to INR 45.97 billion. Its depreciation and amortisation costs increased more than 8% on year to INR 4.27 billion. Its other expenses rose at a much slower pace of 4% on a year-on-basis at INR 10.97 billion.  

The company's operating margin contracted 248 basis points on year and 78 bps on quarter to 8.03%. Meanwhile, its net profit margin for the quarter ended June was 6.30%, down 156 bps on year. The company's annualised inventory turnover, which measures efficiency in managing inventory stock, fell to 5.27 for the quarter under review from 6.14 a year ago.  

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. 2025. All rights reserved.