MRF Q4 net profit rises 33% YoY to ₹493 crore; final dividend of ₹229 declared; share price surges by over ₹6,500

Its net profit (amount attributable to owners of the company) came in at ₹492.74 crore, up 33% against ₹370.52 crore profit registered in the year-ago period.

Its revenue from operations came in at ₹7,074.82 crore, up 11.4% against ₹6,349.36 crore revenue seen in the corresponding quarter of the previous fiscal year.

The company said that its board has recommended a final dividend of ₹229 (2,290%) per share of ₹10 each. The company has already declared and paid two interim dividends of ₹3 (30%) each per share for the financial year ending March 31, 2025. The total dividend for the financial year ended March 31, 2025, works out to ₹235 (2,350%) per share of ₹10 each.

Shares of the company after the result announcement jumped nearly 5% higher. The stock price soared by as much as ₹6,540.6, or 4.84%, to ₹1,41,505, on the BSE.

Further, MRF said that its board has approved the appointment of Messrs Elangovan & Associates, Practising Company Secretaries, Chennai, as Secretarial Auditors of the company, based on the recommendation of the audit committee, for a period of five consecutive years commencing from FY 2025-26, subject to approval of the shareholders of the company at the ensuing annual general meeting (AGM).

On the operational front, the company reported solid numbers. Its operating profit, or EBITDA (earnings before interest, taxes, depreciation, and amortisation), jumped 17.8% YoY to ₹1,043 crore against ₹885 crore seen in the year-ago period.

Its margin came in at 15% as compared to 14.3% in the year-ago period.

According to news reports, MRF's Q4 margin at 15% was higher than the Bloomberg's estimate of 12.50%.

Benign crude oil prices, one of the key raw materials in the production of tyres, have helped the company on the margin front. Crude oil is a key raw material in the production of synthetic rubber and other petrochemicals used in tyres.