MRF Ltd Faces 38% Profit Decline Amid Rising Costs

MRF Ltd reported a 38% decline in net profit to Rs 315.46 crore in Q3 2024, affected by high raw material costs. Revenue rose to Rs 7,000.82 crore from Rs 6,162.46 crore the previous year. Total expenses increased to Rs 6,674.72 crore with raw material costs at Rs 4,656.1 crore.

MRF Ltd, a prominent tyre manufacturer, reported a 38% decrease in its consolidated net profit for the third quarter ending December 2024. The company's profit fell to Rs 315.46 crore, down from Rs 509.71 crore in the same period the previous fiscal year, primarily due to surging raw material costs.

Despite the profit decline, MRF Ltd's consolidated revenue from operations increased to Rs 7,000.82 crore, compared to Rs 6,162.46 crore in the year-ago quarter. However, this growth in revenue was overshadowed by a significant rise in total expenses, which jumped to Rs 6,674.72 crore from Rs 5,557.67 crore in the corresponding period last year.

Notably, the company's cost of materials consumed soared to Rs 4,656.1 crore against Rs 3,790.59 crore a year earlier. In light of these financials, MRF's board of directors announced a second interim dividend of Rs 3 per equity share at a 30% rate for the fiscal year ending March 31, 2025, in its meeting held on February 6, 2025.