MRF Ltd Q3 profit rises 116% to Rs 511.72 crore, revenue rises 14% to Rs 4,567 crore

Tyre giant MRF reported a profit of Rs 511.72 crore during the quarter three ended December 31, 2020, as compared to Rs 236.63 crore in the same quarter in the previous year, which is an increase of around 116 per cent.

In Q3 2021, the company’s total revenue rose by around 14% to Rs 4,567 crore from Rs 4008.89 crore in the corresponding quarter last year.

MRF Ltd has a market capitalisation of Rs 41,563 crore.

Its Revenue from Operations stood at Rs 4566.8 crore (9.1% QoQ, 13.9% YoY)

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) stood at Rs 963.2 Cr (12.7% QoQ, 57.8% YoY) while EBITDA Margin came at 21.1%

Profit before tax surged 86.4% to Rs 690.31 crore in Q3 FY21 over Q3 FY20. Current tax expense jumped 62.48% to Rs 166.53 crore in Q3 FY21 over Q3 FY20.

The company declared a second interim dividend of Rs 3 per share. The record date is fixed on 19th February 2021.

The company’s board has approved raising up to Rs 1000 crore by issuing non-convertible debentures on private placement basis in one or more tranches. The board has authorised the finance committee of the company to determine the detailed terms and conditions thereof and the same will be informed to stock exchanges as and when finalised.

Meanwhile, the company’s stock, which was trading at around Rs 97,000 on Thursday morning, dropped to Rs 92,350 (at 13.55 p.m) after the results were announced.

MRF enjoys the biggest premium in this sector. MRF gets 30 per cent of its revenues from OEM market which is expected to rise about 10-15 per cent, while it gets 70 per cent of its revenues from the replacement market which has done very well this time.

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