MRF Q1 Results: Shares of tyre-maker fall on margin pressure despite topline growth

MRF Q1 Results: Shares of tyre-maker fall on margin pressure despite topline growth


Shares of tyre manufacturer MRF Ltd. fell on Tuesday, August 11, after its June quarter results turned out to be weak on the operational front when compared to the same quarter last year.

MRF’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter fell to ₹990.6 crore, down 7.5% from the ₹1,070.4 crore it reported during the same quarter last year.

EBITDA margin for the quarter fell to 11.77% from 13.95% during the same quarter last year.

MRF’s operating performance was pressured during the quarter as the cost of materials consumed saw a significant increase to ₹5,824 crore from ₹4,597 crore in the base quarter.

Although finance costs dipped from last year, other expenses also went up to ₹1,275 crore from ₹1,097 crore last year.

The tyre manufacturer reported a 9.6% growth in its topline during the June quarter to ₹8,415.5 crore, compared to ₹7,675.6 crore during the year-ago quarter.

MRF has not declared any dividend at the end of this quarter.Shares of MRF are down 2.5% after the results announcement at ₹1,30,630. The stock is down 14% so far this year.

This story will be updated with more details.



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