Standalone profit from continuous operations jumped 417% to 5.81 billion rupees ($70.21 million) for the quarter ended June, from 1.12 billion rupees, a year earlier, according to a regulatory filing.

Analysts, on average, had expected a profit of almost 3.83 billion rupees, according to Refinitiv IBES data.

Earlier this week, MRF's larger rival CEAT posted a nearly 16-fold jump in profit.

Tyre companies reaped the benefits of a fall in rubber prices, a key raw material for the industry, with prices having fallen by 20%-25% over the last year through May, according to HDFC Securities.

This was reflected in MRF's cost of materials consumed, which fell 8% to 37.22 million rupees.

Total expenses, however, grew 2.5% from a year ago thanks to higher sales.

High-income consumers have largely shrugged off the impact of high inflation to splurge on popular utility vehicles and premium motorcycles, while easing supply-chain bottlenecks also helped gradually ramp up production.

Indian automakers recorded an increase in passenger vehicle (PV) demand in recent months, aided by demand for new models, while premium two-wheeler makers reported sales growth on steady urban demand.

Consequently, revenue from operations rose 13% to 63.23 billion rupees.

Rival JK Tyre reports results later this week.

Shares of MRF, which reappointed K. M. Mammen as its managing director for five years effective February 2024, rose over 2% post-results to hit a record high, extending gains to 18% this year.

The company, which began as a toy balloon manufacturer a year before India's independence, makes a slew of products, including racing car tyres, paints and toys.

($1 = 82.7575 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Janane Venkatraman)