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MRF stock gains over 3% post Q2 earnings

IIFL 2017-11-10 14:24:00
Shares of MRF gained over 3% after Q2 FY18 numbers. The PAT for the quarter came in at Rs 300 crore, YoY decline of 22.2%. This was due to 15% increase in its depreciation expense.

Its standalone revenue for the quarter came in at Rs 3,591 crore, registering 0.7% YoY decline.

EBITDA for the quarter fell by 7.8% YoY to Rs 605.7 crore with a corresponding margin contraction of 130 bps. EBITDA margin for the quarter stood at 16.9%. This margin contraction was aided by 5.7% increase in its employee expenses.

The stock is currently trading at Rs 66,668, up by Rs 1683 or 2.59% from its previous closing of Rs 64,985 on the BSE. The scrip opened at Rs 65,188 and has touched a high and low of Rs 67,300 and Rs 63,800 respectively.

MRF is the largest manufacturer of tyres and the largest OEM tyre supplier in India. It has the highest market share of 38% in tyre industry. MRF is the first Indian company to be approved by global luxury car makers. In FY17, its revenue mix comprised of tyres (88%), tubes (8%) and others (5%).