MRF shares fall 4% as firm's Q3 net profit declines 38%, declares Rs 3 dividend

MRF shares fall 4% as firm's Q3 net profit declines 38%, declares Rs 3 dividend

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26 Aug, 2025 12:21

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Shares of tyre maker MRF Ltd declined 4% on February 6 as the firm's net profit fell 38% to Rs 315 crore in the December quarter, as higher rubber costs outweighed steady demand for tyre. The firm reported net profit of Rs 510 crore in the year-ago period.

However, the firm's revenue from operations rose 14% to Rs 7,001 crore in Q3FY25 as against Rs 6,162 crore in Q3FY24, while total expenses increased 20.6%.

At 12:45 pm on February 6, MRF shares on BSE were trading 4% lower at Rs 1,10,374 apiece. The 52-week high of the stock is Rs 1,51,445 and 52-week low is Rs 1.1 lakh. Its market capitalisation is Rs 47,374 crore.

The company also declared second interim dividend of Rs 3 per equity share for the financial year ending March 31, 2025. Record date for the dividend has been fixed as February 14 and will be paid on or after February 25.

The firm's EBITDA was down 21% at Rs 835 crore in Q3FY25 versus Rs 1,055 crore in the year-ago period. The company's EBITDA margin was 11.93% in the December quarter of FY25 as compared to 17.12% a year ago.

Prices of rubber, a key raw material for tyre makers, rose in the December quarter, analysts said. Meanwhile, replacement demand, where customers change old or worn-out tyres with new ones, along with price hikes helped boost revenue, analysts said, reported Reuters. Cost of materials consumed rose 23.8% to Rs 4,634 crore for MRF.

Total vehicle sales in India rose 3.1% year-on-year in the reported quarter, compared with a 19.5% jump in the year-earlier period. This weighed on tyre makers such as MRF, which depend on auto sales for a big chunk of their revenue.

MRF makes tyres for vehicles of Hyundai Motor India and Bajaj Auto, among others.

With inputs from Reuters