MRF net profit jumps two-fold, yet stock falls

MRF, which is one of the largest tyre manufacturers in India, posted a two-fold jump in quarterly profits over previous year on a low base. The revenue for the quarter grew by 9.2% year-on-year to ₹6,047 crore.

On the operating front, the company posted expansion in EBITDA margins at 17% in Q3FY24 vs 9.9% in Q3FY23. However, margins shrunk on a quarterly basis against the previous quarter at 18.5% for Q2FY24.

The company posted EBITDA of ₹1,038 crore for Q3FY24 vs ₹547 crore in Q3FY23 a 90% jump YoY. However, on a quarterly basis the EBITDA declined by 8% vs the previous quarter of ₹1127 crore.

Similarly, the bottom line posted a massive two-fold jump in the net profit at ₹508 crore vs ₹169 crore in Q3FY24 and a 11% decline on quarterly basis at ₹571 crore for Q2FY24.

The company also declared a second interim dividend of ₹ 3 per share and has fixed 21 February 2024 as the record date for the same.

Meanwhile, the stock is trading 4% lower, as of 1:45 PM.