Chennai: Tyre maker MRF Ltd posted a 59% rise in profit for the quarter ended 31 December as it benefited from a fall in rubber prices.
Net profit rose to Rs.180.2 crore from Rs.113 crore in the year-ago period, the company said on Thursday. The profit was notched up on a 5% rise in revenue to Rs.3,023.5 crore from Rs.2,874.1 crore a year earlier.
A Bloomberg analysts’ poll had estimated a profit of Rs.160 crore on a revenue of Rs.3,120 crore.
“Rubber prices are currently at a two-and-a-half-year low. Moreover, the company has been able to maintain realizations, helping them ensure good profitability,” said Siddhartha Khemka, an analyst at Centrum Wealth Management.
Domestic natural rubber prices have fallen 17% over the last year to Rs.157 per kg. International rubber prices have fallen 10% in the same period.
Rival Apollo Tyres Ltd posted a 74% increase in profit to Rs.73.8 crore in the quarter ended December.
Shares of MRF fell 0.53% at the close of trading on Thursday on BSE while the benchmark Sensex ended 0.3% down to 19,580.32 points.