MRF reported a near 28 per cent fall in second-quarter profit on Tuesday, as ​higher costs for raw materials overshadowed ​strong demand for its tyres.

The Wanderer-tyre maker’s ‌profit fell to ₹369 crore ($39.29 million) in the quarter ended September 30, from ₹512 crore a year earlier.

Here are some details:

Revenue from operations rose by almost 18 per cent to ₹8,524 crore, while total expenses grew by more than 22 per cent, driven largely by a rise in material costs related to ‌war in the Middle East.

Cost of materials consumed grew by about 44 per cent during the quarter.

Demand for tyres remained resilient in the July-September quarter, supported by steady dispatches from automakers.

Indian tyre makers faced higher raw material ​costs during the quarter as supply shortages and adverse weather in ‌key producing countries kept natural rubber prices elevated, forcing companies to raise prices.

MRF, ‌which makes tyres certified by Suzuki for use in ‌its superbikes, declared an interim dividend of ₹3 per share for the financial year ‌ending March ​31.

Peers JK ​Tyre and CEAT reported lower second-quarter earnings as higher raw material prices squeezed margins.

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