Tyre maker MRF reported a 38% year-on-year drop in its net profit, at Rs 315.46 crore, for Q3FY25 due to rising raw material costs and a weakening rupee.
The net profit was also down sequentially, from Rs 470.70 crore posted in the previous quarter. The decline in profit came despite a 14% increase in consolidated revenue from operations of the Chennai-based tyre manufacturer. The company had reported a revenue of Rs 7,001 crore for the October-December period.
The company attributed the profit dip to rising input costs, driven by higher commodity prices. “Increased raw material costs, including natural rubber and crude-based materials, along with a stronger US Dollar, led to a rise in overall expenses,” MRF said in its earnings release.
Consolidated expenses for the quarter surged by 20% to Rs 6,674.72 crore, with raw material costs climbing 23% to Rs 4,656.10 crore.
MRF noted that the rise in sales was supported by growth in replacement sales, institutional sales, and exports. “We continue to play a significant role in the electric vehicle segment, supplying tyres to major EV manufacturers,” it added.
Shares of MRF dipped to a new 52-week low of Rs 110,000 on the NSE before closing at Rs 113,857.75.