MRF Q3 Results: Stock jumps 8% after strong operating performance; Dividend declared

MRF Ltd. delivered a strong operating performance for the December quarter compared to the same quarter last year, leading to the stock surging as much as 8% in response to the results on Friday, February 6.

The tyre maker's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 68% to ₹1,399 crore from ₹834 crore during the same quarter last year.

As a result, margins also saw an expansion by nearly 450 basis points to 17.4% to 11.9% from last year.

Revenue for the quarter stood at ₹8,050.4 crore, which is a growth of 15% from the year-ago period's figure of ₹7,000 crore.

Profitability also more than doubled from last year to ₹691.8 crore from ₹316 crore last year. The growth in profitability is despite a one-time impact of ₹77.2 crore due to the new labour codes.

The company's board has also approved its second interim dividend of ₹3 per share, and the record date for the same has been fixed as Friday, February 13.

Shares of MRF are now trading 6.7% higher after the results announcement at ₹1,43,900. The stock is up 26% in the last 12 months.