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Leading tyre-maker MRF Ltd has reported a three-fold increase in December 2023 quarter standalone net profit at ₹508 crore, when compared with a net profit of ₹159 crore in the year-ago quarter, helped by a strong increase in operating margin on the back of topline growth and raw material cost tailwinds.
The Chennai-headquartered company has registered ₹500-crore plus net profit (with a massive year-on-year increase) for the third quarter in a row in this fiscal. In Q1 of this fiscal, it posted ₹581 crore net profit (₹112 crore in Q1 FY23), and in Q2 its net profit was ₹572 crore (₹124 crore)
The board has approved the payment of an interim dividend of ₹3 per equity share (30 per cent) for FY24. In Q3 of this fiscal, the company’s profit before exceptional items stood at ₹679 crore when compared with ₹223 crore in the year-ago period. Its operating margin grew to 11.27 per cent in Q3 FY24 from 4.35 per cent in Q3 FY23.
Revenue from operations grew 9 per cent at ₹6,048 crore in December 2023 quarter when compared with ₹5,535 crore in the year-ago period.
total expenses
While the cost of raw materials consumed stood at ₹3,743 crore when compared with ₹3,751 crore, the company’s total expenses were marginally lower at ₹5,445 crore, against ₹5381 crore in the December 2022 quarter.
On a consolidated basis, the company’s net profit stood at ₹510 crore when compared with ₹161 crore. Revenue from operations stood at ₹6,162 crore, against ₹5,645 crore.
For the 9-month of ended December 31, 2023, the company’s net profit grew to ₹1,661 crore when compared with ₹406 crore in the same period previous fiscal. Revenue stood at ₹18,459 crore, against ₹16,853 crore.
The company’s net worth grew to ₹16,334 crore as of December 30, 2023, from ₹15,831 in the September 2023 quarter, and ₹14,396 crore in the December 2022 quarter.
The company’s scrip closed at ₹137,047 per share, down 3.82 per cent, on the BSE, on Friday.
The other leading tyre makers such as Apollo Tyres and J K Tyres also posted strong numbers for the December quarter. Apollo Tyre’s consolidated net profit grew to ₹497 crore (₹279 crore in Q3 FY23) on a revenue of ₹6,595 crore (₹6,423 crore), while JK Tyre’s standalone consolidated net profit grew to ₹227 crore (₹67 crore) on a revenue of ₹3,688 crore (₹3,613 crore).
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