Indian tyremaker MRF posts quarterly profit in line with estimates

MRF

03/11/2023 08:07

BENGALURU, Nov 3 (Reuters) - India's MRF  MRF.NS 
reported quarterly profit broadly in line with expectations on
Friday, as the tyremaker benefited from softer raw material
prices and steady demand for commercial vehicles. 
    Standalone profit from continuous operations jumped over
fourfold to 5.72 billion rupees ($68.71 million) for the quarter
ended Sept. 30, while analysts, on average, expected a profit of
5.71 billion rupees, according to LSEG data.
    Steady demand for replacement tyres, and for commercial and
passenger vehicles will drive up India's tyre volumes in the
current fiscal year, analysts at Crisil Ratings had
said in September.
    Analysts expected price hikes and premiumisation to help
revenue growth in auto and auto ancillary firms in the second
quarter despite the delay in the festive season.
    A dealers body said last month that India's retail vehicle
sales rose 20% in September and forecast a strong festive
season, with easing monsoon worries and higher rural demand
helping sentiment. 
    MRF's cost of materials consumed fell 9.7% to 37.15 billion
rupees in the quarter, while total expenses also dipped 4.4%.
    The Chennai-based company's revenue from operations grew
6.4% to 60.88 billion rupees in the quarter.
    Rivals CEAT  CEAT.NS  and Goodyear India  GDYR.NS  also
reported a rise in their quarterly profits on lower input costs.
    MRF shares, which have gained nearly 23% in market value so
far this year, fell 2.3% after the results.

    


($1 = 83.2520 Indian rupees)

 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Eileen
Soreng)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))