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MRF on Wednesday reported 86 per cent rise in the consolidated net profit to Rs 313.53 crore in the quarter ending March 31, 2023, as compared to Rs 168.53 crore in the same quarter in 2021-22 (FY22). The tyre maker also announced a dividend of Rs 169 per share.
Its consolidated revenue from operations rose 10 per cent to Rs 5,841.7 crore in Q4FY23 as compared to Rs 5,304.8 crore in Q4FY22.
The company had earlier announced two interim dividends of Rs 3 each. The total dividend for the financial year works out to be Rs 175 per share.
In FY23, the company's profit rose 8.4 per cent to Rs 739.52 crore from Rs 681.67 crore in FY22.
Total expenses rose roughly 5 per cent in the quarter, slowing from a 23 per cent growth in the first nine months of the fiscal year, as rubber prices eased 3 per cent sequentially in the fourth quarter according to a preview note by Elara Capital analysts.
Analysts expect tyremakers including MRF to have booked profits amid a fall in raw material prices, with price increases they had put in place over the last year tipped to further drive bottom lines.
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Indian automakers recorded higher sales in the March quarter as consumers snapped up passenger and commercial vehicles ahead of price increases coming on the back of implementation of tighter fuel emission norms.
However, while wholesale commercial and passenger vehicle sales growth moderated in April, analysts expect demand for replacement tyres would provide cushion to tyremakers including MRF, Apollo Tyres Ltd, JK Tyre and Industries Ltd and CEAT Ltd in the coming quarters.
Shares of MRF, which started as a toy balloon manufacturer a year before India's independence, rose more than 4 per cent post-results.
(With agency inputs)
