MRF Reports 14% Decline in Profit for Q2FY17

Tyre manufacturer MRF yesterday announced its results for Q2FY17. The company reported a 14.36 per cent decrease in standalone net profit at Rs 385.29 crore for the Q2 ended September 30, 2016.  The company had reported a net profit of Rs 449.92 crore in the July-September quarter a year ago.

Yesterday, MRF share price had slipped over 6% on the back of declined net profit. Total income from operation decreased 1.04 per cent to Rs 3,614.63 crore during the quarter under evaluation as against Rs 3,652.78 crore of the corresponding quarter last fiscal. Total expenses were at Rs 3,109.44 crore, up 4.06 per cent, as compared to Rs 2,987.97 crore.

In the first half of the calendar year 2015-16, MRF's' standalone net profit slipped 5.72 per cent to Rs 876.22 crore as compared to Rs 929.47 crore a year earlier. Today, MRF share price traded 3% up to Rs. 47,784.95 on the NSE today rising out of the gloom of its disappointing Q2 result. Total income, in the first half of the current financial year, also declined marginally by 0.46 per cent at Rs 7,497.00 crore as compared to Rs 7,532.17 crore in the same period last financial year.

Meanwhile, in a separate filing, MRF informed BSE that its board of directors in a meeting held today announced an interim dividend of 30 per cent, which is Rs 3 per equity share for the financial year ending March 31, 2017.

At 11:09 Am, MRF share price was trading at Rs. 47674.90, up by 2.74% against 0.31% rise in the Benchmark Index Nifty. So far, nine thousand eight hundred shares were traded over the NSE trading counter. The stock is top 500 recommendations by Dynamic Levels for the quarter. For the details on the levels of support and resistance of MRF, kindly visit MRF share price forecast page of Dynamic Levels website.