MRF Q2 Results: 19% YoY decline in net profit despite 11% revenue growth; ₹3 per share interim dividend declared

Announcing its quarterly results on Friday, November 8, the company reported a 10% increase in its consolidated revenue from operations to ₹6,881.09 crore, as compared to ₹ 6,217.10 crore in the corresponding quarter of FY 2023-24.

In a regulatory filing, the company declared its standalone net profit at ₹455.43 crore during the quarter under review, recording a 20% decline from ₹571.93 crore in the second quarter of FY24, as per the filing.

Additionally, its standalone revenue from operations in Q2 FY25 stood at ₹6,760.37 crore, an 11.1% YoY growth from the previous ₹6,087.56, it stated.

The company’s shares were trading lower by 1.05% at ₹1,19,755 apiece on November 8 on the NSE.

MRF’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) showed a 14% decline, falling to ₹973.6 crore as compared to ₹1,135 crore in the same period last fiscal. The company’s EBITDA margin also reduced by over 400 basis points, dropping to 14.4% from 18.5% in the previous year’s September quarter.

The company also declared an interim dividend of ₹3 per share for its shareholders. The company has set November 19, 2024, as the record date for the said dividend. This means that the shareholders must be on the company’s register by this date to be eligible for the dividend. The declared dividend will be paid on or after November 29, 2024.

About MRF

MRF is India's largest tyre manufacturer and one of the top 20 global tyre producers. It holds a dominant position in the industry and is the largest Original Equipment Manufacturer (OEM) tyre supplier in India. The company offers a wide range of tyres for various vehicles, from two-wheelers to fighter aircraft.

The tyre maker has several manufacturing facilities across India, including locations in Trichy, Tiruvottiyur and Arakonam in Tamil Nadu, Kottayam in Kerala, Ponda in Goa, Medak in Andhra Pradesh and the Union Territory of Pondicherry.

MRF stock performance

MRF’s stock has underperformed in the broader market this year, falling by 8.7% year-to-date and gaining only a little over 9% in the last year, as per a report by the Business Standard. According to the latest data on the NSE, the company has a market capitalisation of ₹50,789.81 crore.