MRF Ltd has reported a decline of 42% YoY in its net profit to Rs 96.4 m for 1QFY01 as compared to Rs 166.2 m for 1QFY00. Its turnover went up marginally by 0.5% to Rs 5,706 m.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
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The recession across all sectors in the automobile industry has resulted in low demand from the tyre industry. MRF Ltd, India's largest radial manufacturer as a result too has reported a lower turnover growth. Higher raw material expenses in 1QFY01 at Rs 3,057 m grew by 11.4% YoY as compared to Rs 2,743 m in 1QFY00. As a percentage of sales, raw material expenses have gone up from 48% in 1QFY00 to 54% in 1QFY01. The major components of raw material, rubber and carbon black have seen their prices rise.
All these factors have resulted in a decline in the company's net profit for 1QFY01.
On the current price of Rs 1,154 MRF is trading at 7.6x FY00 EPS of Rs 151.
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