Shares of MRF Limited fell 3.7% to Rs 1,10,732.70 today after the company reported a sharp 38% year-on-year (YoY) drop in net profit for the third quarter ended December 31, 2024 (Q3 FY25). The company’s net profit stood at Rs 315.5 crore compared to Rs 509.7 crore in the same quarter last year, impacted by rising raw material costs and reduced operating margins.
Despite the drop in profitability, MRF posted a 13.6% YoY growth in revenue from operations, reaching Rs 7,000.8 crore, reflecting strong demand in the automotive sector.
Key financial highlights for Q3 FY25:
- Revenue from operations: Rs 7,000.8 crore, up 13.6% YoY from Rs 6,162.5 crore.
- Net profit: Rs 315.5 crore, down 38% YoY from Rs 509.7 crore.
- EBITDA: Rs 835 crore, down 21% from Rs 1,054.5 crore YoY.
- EBITDA margin: 12%, down from 17% in Q3 FY24.
- Total income: Rs 7,099 crore, compared to Rs 6,240 crore YoY.
- Total expenses: Rs 6,675 crore, up from Rs 5,558 crore YoY, driven by higher input and raw material costs.
- Profit before tax: Rs 424 crore, down from Rs 682 crore in Q3 FY24.
The declining margins reflect the ongoing challenges faced by MRF due to inflationary pressure on input costs. However, the company remains optimistic about long-term growth given its strong product lineup and market position.
The stock is trading within a range of Rs 1,10,776.80 to Rs 1,15,399.90 during the session. The company’s market capitalization stood at Rs 472.46 billion. The decline in stock price followed the announcement of disappointing Q3 results, with net profit falling 38% year-on-year (YoY) to Rs 315.5 crore compared to Rs 509.7 crore in the same quarter last year, driven by rising raw material costs and reduced operating margins.
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