MRF Q1 profit rises 2% to Rs 273 crore, net sales jumps 15%

Tyre maker MRF on Friday reported 2.13 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 273.27 crore for the first quarter ended June 30, 2019.

"The country's largest tyre manufacturer had posted a consolidated net profit of Rs 267.56 crore during the same quarter last year," MRF said in a filing to the Bombay Stock Exchange.

Consolidated net sales grew by 15.14 per cent to Rs 4,471 crore in April-June quarter of the current fiscal as against Rs 3,883 crore in the year-ago period. Its total income during Q1FY20 stood at Rs 4,576.66 crore as against Rs 3,954.51 crore in the same quarter last year, MRF said a regulatory filing.

The other income increased to Rs 105.84 crore as against Rs 71.52 crore in the same quarter last year.

The total expenses of the company rose by 17.15 per cent to Rs 4,159 crore in Q1FY20 versus Rs 3,550.57 crore in Q1FY19. Cost of materials consumed increased to Rs 2,633.21 crore as compared to Rs 2,348.66 crore in the same quarter last fiscal, the company said.

Following Q1 earnings, shares of MRF rallied as much 4.94 per cent to touch an intra-day high of Rs 57,456.85 apiece on the BSE. Paring some of the early gains, the stock closed at Rs 5,7050, up 4.20 per cent.

Edited by Chitranjan Kumar