MRF’s Q3 Profit More Than Doubles on Strong Auto and Replacement Demand
Indian tyre maker MRF reported a more than twofold jump in its third-quarter profit, driven by stronger demand from automobile manufacturers and customers replacing worn-out tyres, helped by lower taxes. The company posted a profit of 6.79 billion rupees for the quarter ended December 31, compared with 3.07 billion rupees a year earlier. Revenue from operations rose 15.3% to 79.34 billion rupees during the period.
Total expenses increased 7.8%, partly due to a one-time exceptional cost of 772 million rupees linked to the implementation of India’s new labour codes. Tyre makers benefited in the quarter from the government’s tax revisions announced in September, which cut levies on most tyres to 18% from 28%, supporting overall demand.
The sector also gained from a sharp rise in vehicle sales, which grew 17.6% in the quarter, with car and two-wheeler sales seeing strong increases. Analysts said growth was supported by demand in both the replacement market and the original equipment segment. Peers including CEAT and Apollo Tyres also reported significant profit growth during the quarter.
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