MRF Q2 Results revealed a significant 20.4% decline in net profit, reaching ₹455 crore for the quarter ended September 30, 2024, compared to ₹572 crore in the same period last year. Despite the drop in profit, the figure was slightly above analysts’ expectations, which forecasted ₹434 crore.
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The company’s revenue for Q2 FY25 stood at ₹6,760 crore, reflecting a substantial 11.1% increase compared to ₹6,087.6 crore in Q2 FY24.
This revenue growth was driven by higher sales across various segments, including the tyre manufacturing business, but the overall profitability took a hit due to higher costs.
MRF’s earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 14% yearly to ₹973.6 crore. EBITDA margins contracted by over 400 basis points, standing at 14.4%, down from 18.5% in the corresponding quarter last year.
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The company’s stock underperformed the market, falling 8.7% year to date. At 1:01 PM on November 8, MRF’s stock was down by 2.33% at ₹1,18,145.10 per share. In comparison, the BSE Sensex was down by 0.16%.
The company also announced an interim dividend of ₹3 per share, with the record date set as November 19, 2024. Shareholders will receive the dividend on or after November 29, 2024.