Shares of MRF rose nearly 3% on May 3 after recording healthy earnings growth and a sharp improvement in margins in the quarter ended March 23.

Due to strong operating performance and extraordinary earnings, the tire maker’s stand-alone profit surged 162% to Rs 410.66 crore in the March quarter of FY23.

In an exchange filing, the company said revenue from stand-alone operations rose 10% to Rs 5,725.4 crore in the current quarter compared to the same period in the previous fiscal.

On an operational level, EBITDA in the January-March quarter of FY23 grew by 60% YoY to Rs 843 crore, and the margin expanded by 460 bps to 14.7%.

The company recorded excess revenue of Rs 80.33 crore in the quarter due to income tax refund.

In FY22-23, MRF’s profit rose 26% to Rs 816.2 crore, and operating income rose 19% to Rs 22,578 crore from a year earlier.

The company said the board recommended a final dividend of Rs 169 per share for the year.

Shares of MRF were trading at Rs 90,920 on the NSE, up 2.62%, with 23,034 shares traded by 2:00 pm.