Tyre maker MRF's net profit fell to Rs 573.4 crore in June quarter, down 6 percent from the corresponding quarter a year ago, while revenue from operations rose by 11.7 percent to Rs 7,196.5 crore compared to a year ago.
The company's June quarter net profit was dragged lower as expenses rose faster than revenue growth, results filed with the stock exchanges revealed.
Cost of materials consumed jumped to Rs 4,370.6 crore in Q1FY25 from Rs 3,780.7 crore in the same quarter a year ago. Other expenses rose to Rs 1,092.7 crore from Rs 967.9 crore.
MRF's total expenses for the June quarter came at Rs 6,517.6 crore, nearly 14 percent YoY higher than Rs 5,727.9 crore in the corresponding quarter preceding year.
The company's operating margin (Earnings Before Interest and Tax - EBIT) margins during the quarter shrunk to 10.61 percent from 12.37 percent a year ago. Its net profit margin also compressed to 7.84 percent from 9.04 percent.
However, MRF saw a significant improvement in the financial results on a quarter-on-quarter basis, with April-June net profit jumping 55 percent on-quarter from Rs 370.5 crore. Operating EBIT margin expanded from 8.3 percent, and net profit margin grew from 6.15 percent.
MRF stock reacted positively to results, with the price jumping nearly 5 percent to top Rs 1.4 lakh per share.
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