Shares of MRF Ltd were trading in the red and 2% below on 3 November despite the company posting a strong quarterly report for July-September.

The tyre manufacturing company reported a fivefold year-on-year (YoY) increase in its net profit at Rs 572 crore for the quarter under review from Rs 124 crore reported in the year-ago quarter.

The revenue from operations saw a 6% YoY increase to Rs 6,087.56 crore during the quarter against Rs 5,719 crore reported in the corresponding quarter of the previous financial year.

On the operating front, the EBITDA (earnings before interest, tax, depreciation, and amortisation) margins expanded to 18.5% for the quarter from 8.2% recorded during the same quarter during the previous fiscal year.

The company said that the improvement in profitability was achieved on account of the moderation of raw material costs, which moderated as much as 10% during the quarter.

In its regulatory filing, the company also announced that the Board of Directors of the company had declared an interim dividend of Rs 3 per share for the current financial year.

At 2:30 pm, the shares of MRF Ltd were trading 2.13% lower at Rs 1,08,141.45 on NSE.