MRF Limited, India’s leading tire manufacturer, reported a 39% decline in standalone net profit to ₹307 crore for the quarter ended December 31, 2024, compared to ₹508 crore in the same period last year. The company’s board declared a second interim dividend of ₹3 per share.
Revenue from operations rose 14% to ₹6,883 crore in Q3 FY25, up from ₹6,048 crore in the corresponding quarter last year. Total income, including other income, stood at ₹6,980 crore, marking an increase from ₹6,124 crore in Q3 FY24.
The company’s operating margin declined to 5.63% in Q3 from 11.25% a year ago, while net profit margin decreased to 4.39% from 8.30%. Operating expenses increased primarily due to higher raw material costs, which rose to ₹4,634 crore from ₹3,743 crore year-on-year.
On a consolidated basis, the company reported a revenue of ₹7,001 crore in Q3 FY25, compared to ₹6,162 crore in the same quarter last year. Consolidated net profit declined to ₹315 crore from ₹510 crore in the corresponding period.
The company maintains a strong balance sheet with a debt-equity ratio of 0.04 and a current ratio of 1.45. The second interim dividend of ₹3 per share (30%) will be paid on or after February 25, 2025, to shareholders on record as of February 14, 2025.
MRF noted in its filing that it continues to contest a Competition Commission of India penalty of ₹622.09 crore imposed in 2022, with the matter currently pending before the Supreme Court.