Revenue growth lower than peers and margins impacted by RM cost inflations | MRF Q2 FY22 Result Analysis

Consolidated Highlights:

• Revenue from operations for the company stood at Rs. 4,908 crores, a YoY growth of 15.6% as in Q2FY21 it was Rs. 4244 crores. On a QoQ basis, the revenue has increased by 17.3%.
• EBITDA for the company stood at Rs. 521 crores, down by (-40%) on a YoY basis as it was Rs. 867 crores on Q2FY21. QoQ growth in EBITDA is 5.17%.
• Due to a fall in EBITDA, the EBITDA margin has reduced by 10.6%, half of what it was during Q2FY21 which was (20.4%). QoQ the EBITDA margin is down by (-122) bps.
• Profit After Tax for the company stood at Rs. 189 crores as compared to Rs. 411 crores in Q2FY21. This is directly a decline of (-54%). The PAT is up on QoQ basis by 14.2%.
• PAT margin stands at 3.9% as compared to 9.7%, down by (-580) bps. QoQ PAT margin remains similar.

Business Highlights:

• The profitability margins of the company are impacted by RM cost inflation & increase in other costs.
• The business profitability was also impacted a subdued performance from TBB & Farm segment.
• Industry players are gradually increasing prices to cope up with the rising input costs. This had led to a stable pricing environment in the industry.

Effect on margins due to RM cost:

No Earnings Call or Investor Presentation was provided by the company.

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