MRF Q4FY23 PAT up 162% at Rs411cr on higher OPM and exceptional gains

MRF reported 10.10% growth in total sales revenues for the March 2023 quarter on standalone basis at Rs5,725cr. On a sequential basis, the revenues were up by 3.44%. MRF is India’s largest tyre company with annual sales exceeding Rs22,000 crore. The surge in profits has been led by more efficient operations, better efficiency gains and from an exceptional gain of Rs80 crore in the quarter.

The exceptional gain arrived at due to the requirement of arms-length pricing between its Singapore subsidiary and the parent. Due to that shift to arms-length pricing, the outcome will be exceptional one-time gains of Rs80 crore which has boosted the profits for the quarter. However, improved operational metrics led to the operating margins more than doubling yoy from 4.18% to 8.99% in Q4FY23.

Financial highlights for Mar-23 compared yoy and sequentially

 MRF LTD    

Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income (Rs cr)

₹ 5,725

₹ 5,200

10.10%

₹ 5,535

3.44%

Operating Profit (Rs cr)

₹ 515

₹ 217

136.79%

₹ 234

120.36%

Net Profit (Rs cr)

₹ 411

₹ 157

161.93%

₹ 169

142.68%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 778.88

₹ 369.66

 

₹ 399.00

 

OPM

8.99%

4.18%

 

4.22%

 

Net Margins

7.17%

3.01%

 

3.06%

 

 

Consolidated Profit after tax (PAT) for March 2023 quarter was up 162% at Rs411cr on the back of improved operating performance and exceptional gains. Net margins and operating margins have improved sharply on a yoy basis and on a sequential basis. Debt service coverage ratio (DSCR) has improved yoy from 10.77X to 13.11X while the interest coverage ratio has improved yoy from 10.85X to 13.15X. Debtor turnover and inventory turnover have improved in Q4FY23, resulting in better operational performance.

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