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Business News/ Companies / MRF profits up by 95% in 3Q, exceed estimates
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MRF profits up by 95% in 3Q, exceed estimates

The company posted a 6% rise in revenues to touch Rs3,939 crore from Rs3,709 crore a year ago

The company reported a net profit of Rs446.81 crore compared with Rs230.22 crore in the year-ago period. Photo: MintPremium
The company reported a net profit of Rs446.81 crore compared with Rs230.22 crore in the year-ago period. Photo: Mint

Chennai: Tyre maker MRF Ltd on Monday reported a 95% rise in net profit for the quarter ended June beating estimates on account of lower raw material prices, mainly natural rubber.

Prices of natural rubber have fallen by 13% to 126 a kg during the quarter compared to the year-ago period.

The Chennai-based company reported a net profit of 446.81 crore compared with 230.22 crore in the year-ago period. A Bloomberg poll had estimated a net profit of 300 crore and 3246 crore in revenues.

It posted a 6% rise in revenues to touch 3,939 crore from 3,709 crore a year ago.

Lower rubber prices has enabled MRF post better than expected Ebitda (earnings before interest, tax, depreciation and amortization) margins but it will be difficult to sustain the same margins in the coming quarters, said an analyst who tracks the company at Angel Broking.

Ebitda margins were 22.9% for the quarter compared with 14.7% a year ago.

The board of directors in its meeting on Monday approved the extension of the financial year of the company by six months to 31 March 2016 in order to comply with the provisions of the Companies Act 2013.

Therefore, the current financial year would be from 1 October 2014 to 31 March 2016. Earlier, MRF was following a financial year from 1 October to 30 September.

MRF shares closed at 39,017.65, up 1.27% on the BSE, while the benchmark Sensex closed 1.96% lower at 27,561.38 points.

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Published: 27 Jul 2015, 05:29 PM IST
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