Tyre manufacturer MRF has reported an 18.9 per cent drop in its net profit at Rs. 170.87 crore in the second quarter ended March 31, 2014, down from Rs. 210.61 crore in the same period the previous year.
The decline in profit is mainly due to a sharp rise in the cost of materials consumed, which went up to Rs. 2,165.64 crore from Rs. 1,823.47 crore in the year-ago period. The company follows October-September as its financial year. Total income from operations went up by 13.5 per cent to Rs. 3,298.91 crore from Rs. 2,906.40 crore in the corresponding period of the previous year. The profit before tax stood at Rs. 253.87 crore against Rs. 306.36 crore in the same period in the previous year.
MRF shares closed at Rs. 21,879.50, down 7.14 per cent amid large volumes on the Bombay Stock Exchange.
Natural rubber prices in India, of course, have fallen at present to their lowest levels in more than four years, following a sharp drop in overseas prices.