MRF shares soar over 5% as Q1 margins beat estimates; net profit slides 3.3% to ₹563 crore

Although the net profit slid during the quarter under review, the market was impressed by the company's margins surpassing estimates, analysts said.

After the results were out, the stock peaked to a high of ₹1,42,500 apiece on the NSE, which was 5.8% higher as against the last closing price. At 3:02 pm, the shares pared some of the gains but were still trading 4.75% higher at ₹1,40,999.25.

MRF's EBITDA (earnings before interest, taxes, depreciation and amortisation) margin narrowed by 160 basis points to 16.1% in Q1FY25, as compared to 17.6% Q1FY24. The margin, however, was higher than the consensus estimate of 14.6%.

Net profit slides 3.3%

The net profit clocked by MRF during the quarter under review slid 3.3% year-on-year (YoY) to ₹563 crore, as against ₹582 crore during the year-ago quarter.

The revenue, however, climbed 12% YoY to ₹7,077.8 crore in Q1FY25 from ₹6,323.3 crore in Q1FY24. MRF's other income during the first quarter of this fiscal rose 12% YoY to ₹82.7 crore.

The company's EBITDA during the quarter ended June 2024 came in at ₹1,137.8 crore, higher by 2.1% from the year-ago period.

MRF did not announce any dividend along with the Q1 results. However, the company's board had approved a dividend of ₹194 per share, which was the highest on record, while releasing the Q4FY24 results in May.