MRF reports 23 percent drop in quarterly profit as raw material costs jump

MRF Ltd has reported a 22.8 percent fall in net profit for the July-September quarter.

Financial Results

Revenue from operations grew by 17.4 percent to reach Rs 8,660.19 crore, compared to Rs 7,378.72 crore in the same period last year. At the same time, total expenses went up because of sharp increases in raw material costs.

Dividend

Despite the drop in profit, the company announced an interim dividend of Rs 3 per share for its shareholders.

Context

Tyre manufacturers often face profit pressure when prices for raw materials like rubber go up. Even when sales and revenue grow, higher input costs can cut into final earnings.