MRF Q2 BOMBSHELL: Profits Jump 12%, Revenue Climbs, Dividend Announced!

Author

Simar Singh | Whalesbook News Team

Detailed Coverage:

MRF Ltd., a leading tyre manufacturer, has announced its financial results for the September quarter, showing significant growth and a dividend payout. The company's net profit surged by 12.3% year-on-year, reaching ₹511.6 crore, up from ₹455 crore in the same period last year. Revenue also saw a healthy increase of 7.2%, amounting to ₹7,249.6 crore compared to ₹6,760.4 crore previously. A key financial indicator, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), grew by 12% to ₹1,090 crore. This growth was accompanied by an expansion in profit margins, which improved by 60 basis points to 15% from 14.4% in the prior year. Additionally, the board of MRF Ltd. approved an interim dividend of ₹3 per share for the current financial year. The record date for this dividend has been set for November 21, with eligible shareholders to receive the payment on or after December 5, 2025. Despite initial fluctuations, MRF shares traded higher following the announcement, having already gained 22% year-to-date.

**Impact**: This news is moderately positive for MRF Ltd. and its shareholders. The growth in profit, revenue, and margins indicates strong operational performance. The dividend announcement provides a direct return to investors. This could lead to continued investor interest in the stock. Rating: 6/10

**Difficult Terms**: * **Net Profit**: The profit remaining after all expenses, including taxes and interest, have been deducted from total revenue. * **Revenue**: The total income generated from the sale of goods or services related to the company's primary operations. * **Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)**: A measure of a company's operating performance. It excludes interest, taxes, depreciation, and amortization expenses, providing a look at core profitability. * **Margins**: The ratio of profit to revenue, indicating how much profit is generated for every rupee of sales. * **Basis Points**: A unit of measure used in finance to describe small changes in percentages. One basis point is equal to 0.01% (1/100th of a percent). * **Interim Dividend**: A dividend paid out by a company once during the financial year, before the final dividend is declared. * **Record Date**: The date on which a shareholder must be registered on the company's books to be eligible to receive a dividend.