Tyre maker MRF Ltd reported consolidated net profit for the December quarter more than doubled to at ₹692 crore on improved sales.
Revenue from operations increased by 15% to ₹8,050 crore over the corresponding period last year. The result included an exception item of ₹77 crore towards New Labour Code impact.
Operations In the third quarter, both Original Equipment & Replacement sales were robust on account of increase in demand following the reduction in GST rates. Rural economy also picked up against the background of good and widespread monsoons, said the Management.
The demand buoyancy arising from reduction in GST rates is expected to continue in fourth quarter also. Moreover, OEMs are expected to increase production levels due to higher sales expected in the last quarter and also due to reduced channel inventory.
Announcement by the Government in the budget of increased spend on infrastructure, augurs well for commercial vehicles and consequently for tyre industry. Trade Agreements, being finalised by the Government with various countries, including with EU and US, will open up opportunities for exports in the coming future, the company said.
The Board declared a second interim dividend of ₹3 per share for FY26.