Leading tyre maker MRF has reported a 14 per cent drop in net profit at ₹385 crore for the second quarter ended September 30, 2016, compared with a profit of ₹450 crore in a year-ago period, due to decline in its operating profit on the back of weak sales.
Also, despite doubling its other income, bottomline fell during the quarter.
Profit before other income, finance costs and exceptional items stood at ₹506 crore against ₹665 crore. Raw material costs were about 2 per cent higher at ₹1,915 crore (₹1,879 crore). Other income doubled to ₹122 crore (₹ 61 crore).
While its finance costs were higher at ₹63 crore (₹53 crore in Q2 of previous fiscal), tax expenses fell to ₹180 crore (₹223 crore).
Total revenues stood at ₹3,615 crore during the July-September quarter of this fiscal compared with ₹3,653 crore in a year-ago quarter.
For the half year ended September 30, 2016, net profit fell by 6 per cent at ₹876 crore against ₹929 crore in the same period of previous fiscal.
Profit before other income, finance costs and exceptional items decreased to ₹1,204 crore against ₹1,373 crore.
Total revenues stood at ₹7,497 crore (₹7,532 crore).