Reduced material cost adds muscle to MRF’s Q2 profits to Rs 571.93 cr

Chennai: The `tyre with a muscle’ maker, MRF Ltd beefed up its bottomline for the second quarter of FY24 due to drastic reduction in material costs and increased operational revenue.

The company has also declared an interim dividend of Rs 3 per share with a face value of Rs 10.

In a regulatory filing, MRF said it had closed the quarter ended September 30 with an operational revenue of Rs 6,087.56 crore (Q2FY23 Rs 5,719 crore) and a net profit of Rs 571.93 crore (Rs 123.99 crore).

During the quarter under review, the company’s after tax profit boomed owing to the Rs 397.7 crore reduction in the material cost.

The company had spent Rs 3,715.28 crore for materials during Q2 down from Rs 4,112.98 crore spent during the previous year corresponding period.

Meanwhile at the BSE, the MRF scrip on Friday opened at a lower note at Rs 110,415 (previous day close Rs 110,512.40) and touched a high of Rs 111,700 and later came down to change hands for Rs 108,133 during the day.