MRF Limited, India's leading tyre manufacturer, has showcased a robust performance in the fourth quarter of the fiscal year 2024-25 (Q4 FY25), reflecting its resilience in a challenging economic environment.
Q4 FY25 Performance Highlights
In Q4 FY25, MRF reported a significant 31% year-on-year (YoY) increase in net profit, reaching Rs 498 crore, up from Rs 380 crore in the corresponding quarter of the previous year. This impressive growth was underpinned by a 12% rise in revenue from operations, which stood at Rs 6,944 crore, compared to Rs 6,200 crore in Q4 FY24.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a healthy growth of 18%, with margins improving to 15%. This indicates enhanced operational efficiency and effective cost management strategies implemented by the company.
Full-Year FY25 Overview
For the entire fiscal year FY25, MRF's revenue from operations increased by 11.8% to Rs 28,153.18 crore, up from Rs 25,174.47 crore in FY24. However, the net profit for the year declined by 10.18% to ?1,869.2 crore, compared to Rs 2,081.3 crore in the previous fiscal year.
The decline in annual profit is attributed to rising input costs, particularly the prices of raw materials like rubber and crude oil derivatives, which form a significant portion of the company's production expenses. Additionally, increased competition and fluctuating demand in both domestic and international markets have posed challenges to maintaining profit margins.
Dividend Announcement
In a move to reward its shareholders, MRF has declared a final dividend of Rs 229 per share for FY25. This brings the total dividend for the fiscal year to Rs 235 per share, including two interim dividends of Rs 3 each paid earlier in the year . The generous dividend payout reflects the company's strong cash flow and commitment to delivering value to its investors.
Strategic Initiatives and Outlook
MRF continues to focus on expanding its product portfolio and enhancing its manufacturing capabilities to cater to the evolving demands of the automotive industry. The company is investing in research and development to innovate and produce high-performance tyres that meet international standards.
Furthermore, MRF is exploring opportunities to strengthen its presence in emerging markets and increase its export footprint. By leveraging its brand reputation and technological expertise, the company aims to capture a larger share of the global tyre market.
Despite the challenges posed by volatile raw material prices and competitive pressures, MRF's strategic initiatives and operational efficiencies position it well for sustainable growth in the coming years.
For more information, visit https://www.indiratrade.com/