Partner Insights

MRF Reports Profit Decline in Q3 FY25 Despite Revenue Growth

Published:
February 6, 2025
Author:
James Lockwood

MRF Limited, a major player in India's tyre industry, has reported mixed financial results for the third quarter of fiscal year 2025 (Q3 FY25).

📈 Total income grew 13.76% to ₹6,097.99 crore, up from ₹5,361.08 crore in Q3 FY24.
📉 Net profit, however, fell 8.36%, dropping to ₹453.60 crore from ₹494.99 crore a year earlier.

The decline in profit suggests that higher costs or margin pressures may have offset the revenue gains.

EBITDA Performance & Margins

MRF’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q3 FY25 stood at ₹1,030 crore, with an EBITDA margin of 16.9%.

While the revenue boost is positive, the profit decline indicates potential cost pressures, which could stem from:

  • Higher raw material costs
  • Increased operating expenses
  • Competitive market pricing

Dividend AnnouncementMRF’s board of directors has declared a second interim dividend of ₹3 per equity share (30% on the face value of ₹10 per share) for the financial year ending March 31, 2024.This move signals confidence in shareholder returns despite the profit decline.

Q&A

How did MRF’s revenue perform in Q3 FY25?
Revenue grew 13.76% to ₹6,097.99 crore, up from ₹5,361.08 crore in Q3 FY24.

Why did profit decline despite higher revenue?
Net profit fell 8.36% due to cost pressures impacting margins.

What was MRF’s EBITDA margin?
The EBITDA margin stood at 16.9%, reflecting profitability before interest and tax deductions.

What dividend did MRF declare?
A ₹3 per share interim dividend for the financial year ending March 31, 2024.

What challenges could MRF face going forward?

  • Fluctuating raw material prices
  • Competitive pressure in the tyre industry
  • Potential macroeconomic factors affecting demand

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