MRF's Q2 net profit surges fivefold to Rs. 572 crore
MRF Ltd witnessed a remarkable surge in its Q2 net profit, soaring five times to Rs. 572 crore, compared to Rs. 124 crore during the same period last year. The company's revenue also saw an uptick, with a 6.5% increase to Rs. 6,088 crore in comparison to Rs. 5,719 crore in the corresponding quarter of the previous fiscal year. The substantial growth in net profit can be credited to the company's enhanced operational performance during the quarter in question.
EBITDA margin expansion and material cost moderation
MRF's operational performance experienced a notable enhancement as its EBITDA margin significantly widened to 18.5% in Q2. This is a considerable leap from 8.2% in the same period last year. This boost in profitability was mainly due to a decrease in raw material expenditure, which made up a large portion of the tire manufacturer's expenses. The cost of raw materials was reduced by as much as 10% during the quarter.
Interim dividend disbursal on November 17
Along with the quarterly earnings, MRF approved an interim dividend of Rs. 3 per share and established its record date as November 17. The announced interim dividend will be disbursed on or post November 30. Despite the robust quarterly results, MRF shares were trading 2.5% lower at Rs. 1,07,751 on the NSE at 3:13pm today (November 3).
