MRF Shares Drop 4% as Q3 Net Profit Declines by 38%, Declares Rs 3 Dividend

MRF Ltd, India’s leading tyre manufacturer, witnessed a sharp 4% drop in its share price following the release of its Q3 FY25 financial results.

The company’s net profit plummeted by 38% year-on-year to Rs 315 crore, down from Rs 510 crore reported in the same quarter last year.

Despite the profit decline, MRF’s revenue from operations showed a positive trend, growing by 14% to Rs 7,001 crore compared to Rs 6,162 crore in Q3 FY24.

The increase in revenue was attributed to higher sales volumes and improved pricing strategies. However, rising input costs and economic headwinds contributed to the significant dip in net profit.

In a move to reward shareholders, MRF declared a second interim dividend of Rs 3 per equity share for the financial year ending March 31, 2025.

This comes amid market concerns over the company’s declining profitability despite strong revenue growth.

The decline in MRF’s stock price reflects investor apprehensions about the company’s ability to sustain profit margins in a challenging economic environment.

Analysts suggest that while the revenue increase is a positive indicator, cost pressures and fluctuating raw material prices continue to impact overall profitability.

Looking ahead, MRF’s performance will be closely watched, particularly in terms of cost management and demand recovery in the automotive sector.

Investors will be keen to see if the company can stabilize its profit margins and drive sustainable growth in the coming quarters.

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