MRF Q1 results: Net profit soars 376%, company reappoints KM Mammen as MD

Tyre maker MRF Ltd on Thursday reported a 376 percent year-on-year (YoY) surge in consolidated profit from continuing operations at Rs 588.75 crore for the first quarter ended June 2023, compared to Rs 123.6 crore in the corresponding quarter of last fiscal.

On a sequential basis, the net profit was up 72.8 percent from Rs 340.67 crore in the previous March quarter (Q4FY23).

The revenue from operations for the reporting quarter stood at Rs 6,440 crore, compared to Rs 5,696 crore YoY. This is an increase of 13.06 percent.

Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), also known as operating profit, was at Rs 1,129 crore as against Rs 493 crore in the year-ago period. Margins came in at 17 percent versus 8.6 percent on-year.

The tyre maker has re-appointed KM Mammen as the Managing Director of the company for 5 years with effect from February 8, 2024.

"We wish to inform that the present tenure of KM Mammen as Managing Director of the company expires on 07.02.2024 and therefore the Board of Directors at its meeting held today approved the re-appointment of KM Mammen, as Managing Director of the company (with the designation 'Chairman &: Managing Director or such other designation as approved by the Board from time to time') for a period of 5 years with effect from 08.02.2024," it said.

The Board has also approved the reappointment of Vimla Abraham as Independent Women Director for a second term of 5 years commencing from 05.02.2024 on expiry of her earlier term.

MRF shares rose 2.40 percent to Rs 1,05,052.40 apiece in trade today after the tyre manufacturing company posted its first quarter results. The stock rose 5.21 percent in a month, while it surged 19.25 percent so far this year.

Shares of MRF crossed the Rs 1 lakh mark in mid-June, becoming the first Indian company to do so in absolute value terms. It has taken the stock more than two years to reach Rs 1 lakh from Rs 90,000.

In comparison, peers like Apollo Tyres and Ceat have outperformed MRF in absolute share price returns on a year-to-date basis, while others have lagged.