MRF's Q2 net profit soars to Rs 572 crore, five times its sales growth

 MRF's Q2 net profit soars to Rs 572 crore, five times its sales growth

The EBITDA margin increased significantly to 18.5 percent in Q2 from only 8.2 percent in the same time last year, indicating an improvement in the operational performance as well.

On November 3, MRF Ltd reported a five-fold year-over-year increase in its Q2 net profit to Rs 572 crore. In the base quarter, the company's net profit was Rs 124 crore.

In comparison to Rs 5,719 crore in the same quarter of the previous fiscal year, the company's sales increased by 6.5 percent year over year to Rs 6,088 crore.

The significant improvement in the business's operational performance during the reviewed quarter accounts for the net profit's fast increase despite the company's muted sales growth.

EBITDA margin increased dramatically to 18.5 percent in Q2 from only 8.2 percent in the same time last year, indicating a considerable improvement in operational performance. The reduction of raw material costs, which account for a portion of the tire manufacturer's expenditure bill, was the cause of the increase in profitability. The cost of raw materials decreased by up to 10% over the previous quarter.

In addition to the quarterly results, the business declared an interim dividend of Rs 3 per share, with November 17 as the record date. Payment of the announced interim dividend will occur on or after November 30.

In spite of the impressive quarterly performance, MRF's shares were down 1.4% at Rs 1,09,000 on the NSE at 1:23 PM.