MRF slumps after poor Q2 earnings

MRF tumbled 7.7% to Rs 21748.75 at 15:13 IST on BSE after net profit declined 18.86% to Rs 170.87 crore on 13.66% growth in total income to Rs 3309.66 crore in Q2 March 2014 over Q2 March 2013.

The Q2 result was announced during trading hours today, 22 April 2014.

Meanwhile, the S&P BSE Sensex was almost unchanged at 22,764.79.

On BSE, so far 8,874 shares were traded in the counter as against average daily volume of 1,652 shares in the past two weeks.

The stock was volatile. The stock tumbled as much as 8.4% at the day's low of Rs 21,629 so far during the day. The stock rose as much as 0.41% at the day's high of Rs 23660 so far during the day.

The stock had outperformed the market over the past one month till 21 April 2014, surging 5.65% compared with the Sensex's 4.65% rise. The scrip had also outperformed the market in past one quarter, jumping 20.05% as against Sensex's 7.12% rise.

MRF's operating profit margin (OPM) declined sharply to 12.5% in Q2 March 2014, from 15.28% in Q2 March 2013. On sequential basis, the OPM declined from 13.08% in Q1 December 2013.

MRF manufactures the largest range of tyres in India and exports to various countries worldwide.

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