Your Directors have pleasure in presenting to you the Sixty Fourth Annual Report and the Audited Financial Statements for the financial year ended 31st March, 2025.
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Financial Results Particulars
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Standalone
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' Crores Consolidated
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2024-2025
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2023-2024
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2024-2025
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2023-2024
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Total Income
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28068
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24986
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28561
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25486
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Profit before tax
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2420
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2739
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2479
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2787
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Provision for
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597
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698
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610
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706
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taxation
Profit for the year
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1823
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2041
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1869
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2081
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Standalone Performance Overview
During the financial year ended 31st March, 2025, your Company's total income was ' 28068 crores as against ' 24986 crores in the previous year, recording a growth of 12 %. The profit before tax stood at ' 2420 crores for the year as against ' 2739 crores for the previous financial year. The net provision for tax (current tax and deferred tax) for the year is ' 597
crores (previous year ' 698 crores). After making provision for income tax, the net profit for the year ended 31st March, 2025 is ' 1823 crores as against ' 2041 crores for the previous financial year.
Despite the increase in total income, profits for the financial year 20242025 declined d ue to increase in input costs.
The Company's exports (including Indian Rupee Exports) stood at ' 2307 crores for the financial year ended 31st March, 2025, as against ' 1874 crores for the previous year, a growth of around 23%.
There was an overall increase in production volumes in financial year 2024-25, with all product groups showing growth.
In the financial year 2024-25, all the three segments of market viz. replacement, institutional and export registered strong growth.
In addition to conventional ICE vehicles, the Company continues to be a significant player in electric vehicles, supplying tyres to all major original equipment manufacturers in commercial, passenger and two/ three wheeler segments.
A slew of new SKUs launched in various categories like Passenger, Motorcycle, Truck, LCV and OTR have given an impetus to growth in the current year.
Raw material cost marginally softened in the 4th quarter compared to the levels in 3rd quarter, which was partially offset by Rupee depreciating against the Dollar. Company effected price increases during the year, which offset the impact of increase in input cost to some extent.
As required under regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (herein after referred to as "SEBI Listing Regulations") the Management Discussion and Analysis Report is attached and forms part of this Report.
Dividend
Two interim dividends of ' 3/- each per share (30% each) for the financial year ended 31st March, 2025 were declared by the Board of Directors on 8th November, 2024 and on 6th February, 2025. The Board of Directors is pleased to recommend a final dividend of ' 229/- (2290%) per share of ' 10 each on the paid up equity share capital of the Company, for consideration and approval of the shareholders at the forthcoming Annual General Meeting which shall be subject to deduction of applicable income tax at source. The total dividend for the financial year ended 31st March, 2025 works out to ' 235/- (2350%) per share of ' 10 each. The above dividend declared by the Company is in accordance with the dividend distribution policy of the Company.
The Directors recommend that after considering provision for taxation and the dividend paid during the year, an amount of ' 1 738 crores be transferred to general reserve. With this, the Company's Reserves and Surplus (including other comprehensive income) stands at ' 18172 crores.
Industrial Relations
Overall, the industrial relations in all our manufacturing units have been cordial. Long Term wage settlements have been concluded in our factories viz., Puducherry and Goa. Both production and productivity were maintained at the desired satisfactory levels throughout the year in all plants.
Consolidated Financial Results and Performance of Subsidiaries
The consolidated financial statements of the Company prepared in accordance with the Companies Act, 2013 and applicable accounting standards form part of the Annual Report. The consolidated total income for 2024-25 was ' 28561 crores and consolidated profit before tax was ' 2479 crores.
Pursuant to the provisions of section 136 of the Companies Act, 2013, the financial statements, consolidated financial statements along with the relevant documents and audited accounts of subsidiaries are available on the website of the Company.
The Company has four subsidiaries viz. MRF Corp Limited, MRF International Limited, MRF Lanka (P) Ltd. and MRF SG PTE. LTD. The aggregate turnover of all four subsidiaries in equivalent Indian Rupees during the financial year ended 31st March, 2025 was ' 3739 crores and the aggregate profit after taxation for the year was ' 51 crores.
A statement in Form AOC-1, containing the salient features of the financial statements of the Company's subsidiaries is attached with the financial statements. The statement provides details of performance and financial position of each of the subsidiaries.
The contribution of the subsidiaries to the overall performance of the Company is given in note 25 (d) of the consolidated financial statements.
Directors' Responsibility Statement
As required under section 134(3)(c) of the Companies Act, 2013, your Directors state that:
a) In the preparation of the annual accounts, the applicable Accounting Standards have been followed and that there are no material departures;
b) They have, in selection of the accounting policies, consulted the statutory auditors and applied them consistently, making judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year ended 31st March, 2025;
c) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) Annual accounts have been prepared on a going concern basis;
e) Internal financial controls had been laid down and followed by the Company and such internal financial controls are adequate and were operating effectively; and
f) Proper systems to ensure compliance with the provisions of all applicable laws have been devised and such systems were adequate and operating effectively.
Risk Management
The Company has developed and implemented a detailed risk management policy for the Company including identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the Company as required under the Companies Act, 2013 read with Regulation 21 of the SEBI Listing Regulations. The Company has constituted a Risk Management Committee of the Board comprising of executive directors and an independent director of the Company as required under SEBI Listing Regulations. The Committee reviews the risk management initiatives taken by the Company including the framework for identification of risks, the measures taken for risk mitigation, implementation of the measures identified for risk mitigations, business continuity plan, sustainability related matters and to monitor and oversee the implementation of the risk management policy on a half yearly basis. During the year, the Committee met on 14th October, 2024 and 28th March, 2025.
Adequacy of Internal Financial Control
Internal financial control means the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Company's policies, the safeguarding of its assets, timely prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. The Company has put in place well defined procedures, covering financial and operating functions. Delegation of authority and segregation of duties are also addressed to ensure that the financial transactions are properly authorized. Further the Company has an integrated ERP system connecting head office, plant and other locations to enable timely processing and proper recording of transactions. Physical verification of fixed assets is carried out on a periodical basis. The Internal audit department reviews the effectiveness of the internal control systems and key observations are reviewed by the Audit Committee. These, in the view of the Board, are designed to collectively provide an adequate system of internal financial control with reference to the financial statements commensurate with the size and nature of business of the Company.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
Information as required to be given under section 134(3)(m) read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is provided in Annexure I, forming part of this Report.
Corporate Social Responsibility (CSR)
As required under section 135 of the Companies Act, 2013, the CSR Policy was formulated by the CSR Committee and thereafter approved by the Board. CSR Policy is available on the Company's website: https://www.mrftyres.com/ investor-relations/corporate-social-responsibilty . The annual report on CSR activities during the financial year ended 31st March, 2025 and other details required to be given under section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 is given in Annexure II forming part of this Report.
Board and Key Management Personnel
During the year under review, consequent to the completion of their second term, Mr. Ashok Jacob (DIN: 00018605), Mr. V Sridhar (DIN: 00020276), Mr. Vijay R Kirloskar (DIN: 00031253), Mr. Ranjit I Jesudasen (DIN: 00020181), Dr. Salim Joseph Thomas (DIN: 00033022) and Mr. Jacob Kurian (DIN: 00860095) ceased to be Independent Directors with effect from the close of business hours of September 28, 2024. The Board places on record its sincere appreciation and gratitude to Mr. Ashok Jacob, Mr. V Sridhar, Mr. Vijay R Kirloskar, Mr. Ranjit I Jesudasen, Dr. Salim Joseph Thomas and Mr. Jacob Kurian for the valuable services rendered by them during their tenure on the Board.
As required under Section 152 of the Companies Act, 2013, Mr. Rahul Mammen Mappillai (DIN: 03325290), Managing Director and Mrs. Ambika Mammen (DIN: 00287074), Director of the Company, retire by rotation at the forthcoming Annual General Meeting and being eligible have offered themselves for re-appointment.
The Company has received declarations of independence from all the Independent Directors confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and SEBI Listing Regulations and that they are independent from Management.
The Board is of the opinion that all the Independent Directors of the Company are person's of integrity and possess relevant expertise and experience (including the proficiency) to act as Independent Directors of the Company. The Independent Directors of the Company have confirmed that they have been registered with the Indian Institute of Corporate Affairs, Manesar and have included their name in the databank of Independent Directors within the statutory timeline and have also qualified/exempted from passing online proficiency self assessment test as required under Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014.
Performance evaluation of the Board, its Committees and Directors
The Board of Directors has made a formal annual evaluation of its own performance and that of its committees pursuant to the provisions of the Companies Act, 2013 and SEBI Listing Regulation. The evaluation was done based on the evaluation criteria formulated by Nomination and Remuneration Committee which includes criteria such as fulfilment of specific functions prescribed by the regulatory framework, adequacy of meetings, attendance and effectiveness of the deliberations etc.
The Board also carried out an evaluation of the performance of the individual Directors (excluding the Director who was evaluated) based on their attendance, participation in deliberations, understanding the Company's business and that of the industry and in guiding the Company in decisions affecting the business and additionally in case of Independent Directors based on the roles and responsibilities as specified in Schedule IV of the Companies Act, 2013 and fulfilment of independence criteria and independence from management.
Corporate Governance
In accordance with Regulation 34 of the SEBI Listing Regulations, a Report on Corporate Governance along with the Auditors' Certificate confirming compliance is attached and forms part of this Report.
Following information required to be disclosed as per the Companies Act, 2013 are set out in the Corporate Governance Report:
a) Number of Board meetings held - Para 2(c) of the Corporate Governance Report.
b) Constitution of the Audit Committee and related matters - Para 3(ii) and 14(o) of the Corporate Governance Report.
c) Remuneration Policy of the Company (including director's remuneration)- Para 7a of the Corporate Governance Report.
d) Company's policy on directors' appointment including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178 - Para 5, 6 of the Corporate Governance Report. The nomination and remuneration policy is also available on the website of the Company. https://www.mrftyres.com/downloads/download. php?filename=nominatio-%20and-remuneration-policy.pdf
e) Related Party Transactions - Para 14(a) of the Corporate Governance Report. During financial year 2024-2025, the total value of transactions executed with MRF SG PTE. LTD., exceeded the materiality threshold adopted by the Company. These transactions were in the ordinary course of business and were on an arm's length basis, details of which are provided in Annexure IV of the Board's Report as required under Section 134(3) (h) of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014.
f) Vigil Mechanism/Whistle Blower Policy - Para 14 (c) of the Corporate Governance Report.
The details of related party transactions are given in note 27c of the financial statements.
Business Responsibility and Sustainability Report
Pursuant to Regulation 34 of the SEBI Listing Regulations, the Business Responsibility and Sustainability Report [BRSR] of the Company for the financial year ended 31st March 2025 in the prescribed format giving an overview of the initiatives taken by the Company from an environmental, social and governance perspective, including reasonable assurance on BRSR Core indicators from SGS India Pvt. Ltd., Mumbai is available on the website of the Company. www.mrftyres.com. Weblink: https://www. mrftyres.com/investor-relations/business-responsibility-and-sustainability-report
Particulars of Employees
Disclosures with respect to the remuneration of the Directors, KMP's and Employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in Annexure V to this Report.
Further, the disclosures pertaining to remuneration of employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5 (2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 have been provided in the appendix forming part of this report. Having regard to the provisions of Section 136(1) read with relevant provisions of the Companies Act, 2013, the Annual Report excluding the aforesaid information is being sent to the members of the Company. The said information is available for inspection at the Registered Office of the Company during working hours and any member interested in obtaining such information may write to the Company Secretary and the same will be furnished to the members.
Details regarding compliance with Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 is given in the Corporate Governance Report.
Deposits
Your Company had discontinued acceptance of fixed deposits with effect from 31st March, 2019 and all deposits have been repaid. No fresh deposits have been accepted subsequently.
Auditors
Messrs. M M Nissim & CO LLP, Chartered Accountants, (Firm Regn No.107122W / W100672), Mumbai and Messrs. Sastri & Shah, Chartered Accountants (Firm Regn No.: 003643S), Chennai were appointed as joint statutory auditors of the Company for a term of 5 (five) consecutive years, at the Annual General Meeting of the Company held on 12th August, 2021 and 4th August, 2022.
Auditors Report to the shareholders for the financial year ended 31st March, 2025, does not contain any qualification.
Cost Audit
The Board of Directors, on the recommendations of the Audit Committee, has approved the appointment of Mr.J. Karthikeyan of M/s. J. Karthikeyan & Associates, (Firm Reg No.102695), Cost Accountant, Chennai as Cost Auditor of the Company for the financial year ending 31st March, 2026, under section 148 of the Companies Act, 2013, and recommends ratification of his remuneration by the shareholders at the forthcoming Annual General Meeting of the Company.
Secretarial Audit
Pursuant to provisions of Section 204 of the Companies Act, 2013 read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company engaged the services of Mr.K Elangovan, Elangovan & Associates, Practising Company Secretaries, Chennai to conduct the Secretarial Audit of the Company for the financial year ended 31st March, 2025. The Secretarial Audit Report (in Form MR-3) is attached as Annexure-III, to this Report. The Secretarial Auditor's Report to the shareholders does not contain any qualification.
Further, in terms of the SEBI Listing Regulations, the Board has recommended appointment of Messrs. Elangovan & Associates, Practising Company Secretaries (Firm Regn No. P2025TN104500), Chennai as the Secretarial Auditors of the Company for a term of five consecutive financial years commencing from 2025-26. The appointment will be subject to shareholder's approval at the ensuing AGM.
Annual Return
The Annual Return as required under Section 92 and Section 134 of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 is available on the Company's website: www.mrftyres.com. Weblink: https://www.mrftyres.com/investor-
relations/annual-return
Other Matters
There are no material changes and commitments affecting the financial position of the Company between the financial year ended 31st March, 2025 and the date of this report.
During the year under review, there were no material and significant orders passed by the regulators or courts or tribunals impacting the going concern status and the Company's operations in future.
During the year under review, the Company has not given any loan or security or guarantee in terms of section 186 of the Companies Act, 2013. Details of investments as required under section 134 of the Companies Act, 2013 is given in note 3 to the financial statements.
During the year under review, the Board confirms that the Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.
During the year under review, no fraud has been reported by the auditors to the audit committee or the board.
During the year under review, there is no change in the nature of business of your Company.
During the year under review, no proceedings are made or pending under the Insolvency and Bankruptcy Code, 2016 and there is no instance of one-time settlement with any Bank or Financial Institution.
During the year under review, the requirement to disclose the details of the difference between the amount of the valuation done at the time of one-time settlement and the valuation done while taking a loan from the Banks or Financial Institutions along with the reasons thereof, is not applicable.
During the year under review, no shares with differential voting rights and sweat equity shares have been issued.
As regards Cost Audit Records, it is confirmed that the Company is covered by Cost Audit Records Rules under section 148(1) of the Companies Act, 2013 and accordingly, such accounts and all relevant records are maintained by the Company.
Appreciation
Your Directors place on record their appreciation of the invaluable contribution made by the Company's employees which made it possible for the Company to achieve these results. They would also like to take this opportunity to thank customers, dealers, suppliers, bankers, financial institutions, business associates and valued shareholders for their continued support and encouragement.
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