Leading Tyre manufacturer MRF has announced a 20 per cent year-over-year drop in standalone net profit to ₹455 crore for the quarter ended September 30, 2024, down from ₹572 crore in the same period last year. The decline follows two quarters of strong profit growth.

MRF’s profit before exceptional items and taxes was ₹611 crore, compared to ₹773 crore in the September 2023 quarter. Revenue from operations, however, saw an 11per cent increase, rising to ₹6,760 crore in Q2 FY25 from ₹6,088 crore a year earlier.

Higher raw material costs, which climbed to ₹4,716 crore from ₹3,715 crore, contributed to an overall increase in total expenses, reaching ₹6,262 crore compared to ₹5,384 crore in the previous year’s Q2.

The input cost environment was challenging, as reflected in rising commodity prices. Despite achieving double-digit revenue growth compared to Q2 2024, the company managed to partially offset these increased input costs by raising the prices of its end products.

On a consolidated basis, MRF’s profit after tax for Q2 stood at ₹471 crore, down from ₹587 crore in Q2 FY24. Consolidated revenue from operations increased to ₹6,881 crore from ₹6,217 crore.

For the half-year period ended September 30, 2024, standalone net profit fell to ₹1,018 crore from ₹1,153 crore, with revenue climbing to ₹13,838 crore from ₹11,318 crore.

MRF’s net worth also rose to ₹17,668 crore as of September 30, 2024, up from ₹15,831 crore a year earlier.

The board has recommended an interim dividend of ₹3 per equity share (30 per cent) for FY25.

On Friday, MRF’s stock closed at ₹119,186.30 per share, down 1.47 per cent, on the BSE.

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