Share the post "MRF announced Financial Results Q1 2024"
Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 11.74 % in the past year, substantial increase in net sales/revenue by 13.34 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 12.52 %. Marginal decrease of -10.41% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for MRF Limited. Profit dropped by -3.01 % Year to Year, MRF Limited’s profitability increased by 44.16 % in this quarter.
- EPS over the Year and quarter: EPS declined by -3.01 % Year to Year. EPS increased by 44.16 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 6440.29 Cr | Rs. 6349.36 Cr | Rs. 7196.45 Cr | + 13.34 % | + 11.74 % |
| Expenses | Rs. 5310.44 Cr | Rs. 5437.33 Cr | Rs. 6036.83 Cr | + 11.03 % | + 13.68 % |
| Operating Profit | Rs. 1129.85 Cr | Rs. 912.03 Cr | Rs. 1159.62 Cr | + 27.15 % | + 2.63 % |
| OPM % | 17.54 % | 14.36 % | 16.11 % | + 1.75 % | -1.43 % |
| Other Income | Rs. 74.69 Cr | Rs. 93.81 Cr | Rs. 84.04 Cr | -10.41 % | + 12.52 % |
| Interest | Rs. 84.22 Cr | Rs. 93.25 Cr | Rs. 84.67 Cr | -9.2 % | + 0.53 % |
| Depreciation | Rs. 333.26 Cr | Rs. 385.25 Cr | Rs. 396.08 Cr | + 2.81 % | + 18.85 % |
| Profit before tax | Rs. 787.06 Cr | Rs. 527.34 Cr | Rs. 762.91 Cr | + 44.67 % | -3.07 % |
| Tax % | 25.2 % | 24.89 % | 25.15 % | + 0.26 % | -0.05 % |
| Net Profit | Rs. 588.75 Cr | Rs. 396.11 Cr | Rs. 571.02 Cr | + 44.16 % | -3.01 % |
| EPS in Rs | Rs. 1388.19 | Rs. 933.97 | Rs. 1346.38 | + 44.16 % | -3.01 % |
Today, we’re looking at MRF Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 11.74 %. However, it did see a marginal increase of 13.34 % from the previous quarter. Expenses ticked up slightly by 11.03 % quarter-on-quarter, aligning with the annual rise of 13.68 %. Operating profit, while up 2.63 % compared to last year, faced a quarter-on-quarter increase of 27.15 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.43 %, but an expansion of 1.75 % sequentially. Other income fell by -10.41 % compared to the last quarter, despite an annual growth of 12.52 %. Interest expenses dropped significantly by -9.2 % from the previous quarter, yet the year-over-year increase remains at a moderate 0.53 %. Depreciation costs climbed by 2.81 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 18.85 %. Profit before tax declined annually by -3.07 % but saw an increase from the preceding quarter by 44.67 %.
Tax expenses as a percentage of profits decreased slightly by -0.05 % compared to last year, with a more notable quarter-on-quarter increase of 0.26 %. Net profit fell by -3.01 % year-on-year but experienced a 44.16 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -3.01 % but a quarterly rise of 44.16 %. In summary, MRF Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 6440.29 Cr | Rs. 6349.36 Cr | Rs. 7196.45 Cr | + 13.34 % | + 11.74 % |
| Expenses | Rs. 5310.44 Cr | Rs. 5437.33 Cr | Rs. 6036.83 Cr | + 11.03 % | + 13.68 % |
| Operating Profit | Rs. 1129.85 Cr | Rs. 912.03 Cr | Rs. 1159.62 Cr | + 27.15 % | + 2.63 % |
| Net Profit | Rs. 588.75 Cr | Rs. 396.11 Cr | Rs. 571.02 Cr | + 44.16 % | -3.01 % |
| EPS in Rs | Rs. 1388.19 | Rs. 933.97 | Rs. 1346.38 | + 44.16 % | -3.01 % |
In reviewing MRF Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 11.74 % year-on-year growth, however, there was a minor increase of 13.34 % from the previous quarter. Expenses rose by 13.68 % compared to the previous year, with a 11.03 % increase quarter-on-quarter. Operating Profit surged by 2.63 % annually, and saw a 27.15 % increase from the last quarter.
Net Profit showed yearly decrease of -3.01 %, and experienced a 44.16 % increase from the previous quarter. Earnings Per Share (EPS) fell by -3.01 % annually, however rose by 44.16 % compared to the last quarter. In essence, while MRF Limited faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
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