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MRF Q2 Profit Falls 28% to ₹369 Crore Amid Rising Raw Material Costs
Sentiment: NeutralHigh Priority
What Happened?
MRF reported a 28% decline in second-quarter profit to ₹369 crore due to rising raw material costs, despite strong tyre demand. Revenue increased by 18% to ₹8,524 crore.
Key points
- MRF's profit fell to ₹369 crore from ₹512 crore a year earlier.
- Revenue from operations rose by 18% to ₹8,524 crore.
- Total expenses increased by over 22%, primarily due to rising material costs.
- Material costs surged by about 44% during the quarter.
- Demand for tyres remained strong, supported by steady dispatches from automakers.
- MRF declared an interim dividend of ₹3 per share.
Key insights
- Higher raw material costs could pressure MRF's future profitability.
- The tyre industry's resilience may be tested if material costs continue to rise.
- Investors may closely monitor MRF's pricing strategies in response to cost increases.
Why it matters
The profit decline highlights the impact of rising raw material costs on the tyre industry.
Entities
MRF· CompanySuzuki· Brand
Source
Business Standard
