Shares of MRF Ltd dipped over four percent in intra-day trade on Thursday despite the company reporting good numbers for the quarter that ended December 2022. The company’s shares were trading 4.11 percent lower over the previous close at Rs 88,423.65 apiece on BSE at 2:28 PM.
The tyre maker’s revenue from operations stood at Rs 5,644 crore in the December quarter, an increase of 14.71 percent year-on-year (YoY) from Rs 4,920 crore in Q3FY22. However, revenue declined sequentially by 3.12 percent from Rs 5,826 crore reported in the September quarter.
The profit after tax (PAT) in the latest quarter stood at Rs 174.83 crore, an increase of 17 percent YoY from Rs 149.39 crore in Q3FY22. Sequentially, PAT increased 34.62 percent from Rs 129.86 in Q2FY23.
MRF’s EBITDA also improved to Rs 562 crore in Q3FY23 from Rs 493 crore in the year-ago period, an increase of 13.9 percent.
Operating margins remained nearly flat at 10 percent compared to 9.9 percent in the corresponding period from the previous financial year.
The company’s steady revenue growth was due to strong replacement demand. Margins also held steady due to price hikes as well as decreasing raw material prices.
The company’s board of directors also approved the declaration of a second interim dividend of Rs 3 per equity share. The record date for the interim dividend has been set as February 21, 2023, with the dividend to be paid on or after March 6, 2023.
