Why did MRF report such a sharp fall in profits for the Mar-21 quarter?

MRF reported 51% fall in consolidated net profit at Rs.332 crore for the Mar-21 quarter but this is not exactly a fall as it was purely due to the exceptional write-back in the Mar-20 quarter. MRF booked Rs.451 crore deferred tax credit in the Mar-20 quarter, and in its absence, the net profit would have been higher yoy in the Mar-21 quarter.

MRF revenues for the Mar-21 quarter were up by 31% on strong growth in the auto sector as festive demand was strong. A more reliable metrics for Q4 would be the 31% growth in EBITDA to Rs 766 crore and EBITDA margins at 15.9%. MRF declared Rs.94 final dividend plus Rs.50 special dividend for 75 years completion taking total dividend for the year to Rs.150 per share.