MRF June quarter net profit grows five times to Rs 581.5 crore; shares soar to all-time high

Tyre manufacturer MRF on Thursday reported a standalone net profit of Rs 581.5 crore for the quarter ended June 2023, marking an increase of more than five times from a net profit of Rs 112.4 crore for the corresponding period a year ago. Easing raw material prices and firm demand aided the tyre maker's profitability.

MRF shares scaled an all-time high after the earnings announcement. 

The quarterly net profit beat Street estimates. 

Analysts had on average estimated the company's net profit at Rs 383 crore, news agency Reuters reported citing Refinitiv IBES data.

The company's revenue grew to Rs 6,323.3 crore for the April-June period as against Rs 5,598.9 crore for the year-ago period, according to a regulatory filing.

MRF's cost of materials consumed decreased 7.9 per cent on a year-on-year basis to Rs 3,722 crore. 

Its operating margin improved to 12.37 per cent for the quarter ended June 2023 from 3.43 per cent for the three-months ended June 2022.  

Auto makers have registered a rise in demand for passenger vehicles (PVs) in the past few months.

MRF shares gained by Rs 4,283 or 4.2 per cent to a record closing high of Rs 1,06,923.1 apiece on BSE, after scaling an all-time high of Rs 1,07,500 during the session following the announcement. 

In a separate development, MRF reappointed KM Mammen as Managing Director for five years. His appointment will take effect on February 8, 2024, after his current term expires on February 7, 2024. 

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.