MRF Tyres (QoQ) results marginally down

MRF Tyres Ltd. has declared its Q4FY16 results. On a (QoQ) basis the Net Income from operations has increased by 6 per cent and stands at Rs 3449.55 crore as compared to Rs 32609 crore of the previous quarter. EBITDA stands at Rs 716.04 crore as compared to 737.97 crore for the previous quarter. EBITDA has declined by the margin of 3 per cent on a (QoQ) basis. Net Profit for the current quarter has seen a plunge of around 3 per cent and stands at Rs 375.8 crore as compared to 388.15 crore for the previous quarter.

MRF has changed their financial year from Sept to March. Therefore, it would not be right to compare the results with the previous year, as MRF has declared 18 months results together. However, for the year ended March 2016 the Net Income from operations stands at Rs 20542.2 crore. EBITDA stands at Rs 4356.92 crore.Net Profit stands at Rs 2366 crore.

On a (QoQ) basis the results have disappointed. The EBITDA and Net Profit for the quarter have almost remained flat. The company has benefited from declining crude oil prices, as the Consumption of Raw Material cost has declined by 5 per cent. But other expenses reported have increased by 16 per cent. The shares on the bourses are trading at Rs 33853.35, which is up by 1.25 per cent on an intra- day basis.

MRF Ltd. is an Indian company engaged in manufacturing and marketing of tyres for various vehicles. The company’s products are Tyres, conveyor belts,precured treads,paints &coats and sports goods. The company is dealing only in the rubber segment.