Tyre manufacturer MRF Ltd announced its March quarter earnings for FY23 on May 3. During the quarter under review, the company’s consolidated profit surged 86% year-on-year (YoY) at ₹313.53 crore against ₹168.53 crore in the year-ago period owing to higher automobile sales, which prompted an increase in demand.

The company's revenue from operations in the March quarter stood at ₹5,841.72 crore, up 9.1% YoY as against ₹5,304.82 crore in the same period in FY22.

In FY23, the company’s profit stood at ₹739.52 crore, which is an increase of 8.4% against ₹681.67 crore in FY22. For FY23, the company’s revenue from operations stood at ₹23,008 crore as against ₹19,316.72 crore in FY22.

The company has also announced a final dividend of ₹169/- per share of ₹10 each. The tyre maker has already declared and paid two interim dividends of ₹3/-(30%) each per share for the financial year ended 31st March, 2023. The total dividend for the financial year ended 31st March 2023 works out to ₹175 (1750%) per share of ₹10 each.

Following the development, shares of MRF Ltd surged as much as 6.4% to hit an intraday high of ₹94,254.80 apiece on the BSE on Wednesday. The scrip opened lower at ₹88,250.05 on Wednesday against the closing price of the previous session at ₹88,593.60. On Wednesday, the scrip closed higher by 5.23% at ₹93,223.75. In contrast to this, the broader S&P BSE Sensex declined 0.26% or 161.41 at 61,193.

During the session, MRF’s market capitalisation stood at ₹39,537 crore as 1,418 shares exchanged hands on the BSE, higher than the two-week average of 145 shares. At present, shares of MRF are trading 1.7% lower than the 52-week high of ₹95,954.35, whereas the share price is trading 43% higher than the 52-week low of ₹95,954.35.

Automakers recorded robust growth in sales in the January to March period this year. According to a report by ICRA, in FY24, domestic tyre sales will grow 6% to 8%, supported by stable growth in the replacement segment and sustained demand momentum in the OEM segment. ICRA expects the demand momentum in the OEM segment to continue in FY2024 with an estimated growth of 8-10%.

Tyre manufacturer MRF Ltd

MRF Tyres profit soars 86% YoY in March quarter; stock up 6%