MRF share price: MRF shares fell on Wednesday, a day after the tyre manufacturer reported a fall of 29 percent in quarterly net profit on account of elevated material costs.
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MRF shares faced selling pressure on Wednesday, a day after the tyre maker reported a 29 percent fall in quarterly net profit, marred by elevated input costs on account of higher raw material prices. The MRF stock fell by Rs 5,096.9 or 5.8 percent to Rs 82,615.4 apiece on BSE at the weakest level of the day.
The tyre maker’s financial results come at a time when wild swings in commodity prices have posed margin pressure across sectors. Its net profit for April-June period came in at Rs 119.5 crore, as against Rs 168.2 crore for the corresponding period a year ago.
The revenue of MRF — a manufacturer and marketer of tyres and other rubber products, however, increased 36 percent to Rs 5,696 crore for the three-month period compared with the year-ago quarter, according to a regulatory filing.
The company's total expenses jumped 37.3 percent to Rs 5,566.6 crore, primarily fuelled by the cost of material consumed, which increased 26.5 percent to Rs 4,114.1 crore — its biggest gain in three quarters.
The higher expenses dented the company's margin.
Its EBITDA margin — a key metric that determines a business’s operational efficiency — fell by 320 basis points on year to 8.7 percent.
MRF shares have rewarded investors with a return of 9.7 percent in the past one month, a period in which the benchmark Nifty50 index has risen eight percent.
(Edited by : Sandeep Singh)