MRF, India’s leading tyre manufacturer, released its financial results for the fourth quarter of FY24, reporting a standalone net profit of ₹379.6 crore. This marks a decline of 7.6% from ₹410.7 crore recorded in the same period last year. Despite the drop in net profit, the company’s revenue from operations for Q4FY24 saw a healthy increase of 8.6%, rising to ₹6,215.1 crore from ₹5,725.4 crore on a year-on-year basis.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the March quarter also exhibited growth, increasing by 5% to ₹885.7 crore compared to ₹843.1 crore in the corresponding period of the previous year. However, the EBITDA margin weakened slightly to 14.3% from 14.7% YoY.
On a consolidated basis, MRF reported a net profit of ₹396.11 crore for Q4FY24, representing a notable increase of 16% from ₹340.65 crore in the year-ago period. Consolidated revenue from operations witnessed a similar uptick, growing by 8.38% to ₹6,349.36 crore compared to ₹5,841.72 crore in Q4FY23.
For the entire financial year 2023-2024, MRF’s net profit witnessed a substantial jump to ₹2,081.23 crore from ₹768.94 crore at the end of FY23. This significant increase underscores the company’s resilience and ability to navigate challenging market conditions.
The company’s revenue from operations for FY24 also recorded a healthy growth of 9.39%, reaching ₹25,169.21 crore as opposed to ₹23,008.50 crore in FY23.
In light of its strong financial performance, the board of directors of MRF has recommended a final dividend of ₹194 or 1,940% per equity share of face value of ₹10 each. This final dividend, along with two interim dividends declared earlier in the financial year, brings the total dividend for FY24 to ₹200 per share, or 2000% per share of ₹10 each.
MRF shares, known for being India’s highest-priced stock, experienced a record high of ₹151,283.40 on February 23, 2024. Despite a 9% decline in the past three months, and a marginal 1% decrease year-to-date (YTD), MRF shares have demonstrated significant gains over the past one year, rising by over 37%, and more than 60% in the past three years.
The latest financial results indicate MRF’s continued commitment to delivering value to its shareholders while maintaining a strong position in the market amidst dynamic economic conditions.
