Reduced Material Costs and Increased Operational Revenue Drive MRF Ltd’s Strong Q2 Performance
Chennai-based tyre manufacturer MRF Ltd has reported a significant boost to its bottomline for the second quarter of FY24. This positive performance can be attributed to a drastic reduction in material costs and increased operational revenue.
The company closed the quarter ended September 30 with an operational revenue of Rs 6,087.56 crore, compared to Rs 5,719 crore in the same quarter of the previous year. Additionally, MRF recorded a net profit of Rs 571.93 crore, a substantial increase from Rs 123.99 crore in the previous year.
One of the key factors contributing to MRF’s impressive after-tax profit during this period was the substantial reduction in material costs. The company spent Rs 3,715.28 crore on materials during Q2, down from Rs 4,112.98 crore in the corresponding period of the previous year.
In light of this strong financial performance, MRF has declared an interim dividend of Rs 3 per share with a face value of Rs 10.
On the stock market, MRF’s scrip opened lower at Rs 110,415 (compared to the previous day’s close of Rs 110,512.40) and reached a high of Rs 111,700. However, it later declined and was traded at Rs 108,133 during the day.
In summary, MRF Ltd has reported impressive financial results for the second quarter of FY24, driven by reduced material costs and increased operational revenue. The company’s after-tax profit saw a significant boost, thanks to a substantial reduction in material costs. MRF’s stock performance on the BSE was initially lower but later picked up during the day.
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