MRF’S Q1 net profit down 95% YOY to ₹13 cr due to Covid

NEW DELHI: Shares of tyre major MRF Ltd on Friday dropped nearly 4% after the company reported a 95.07% decline in its consolidated net profit for the June quarter.

The stock declined 3.91% to close at ₹61,488.50 apiece on BSE. During the day, it tanked 4.36% to ₹61,200.15.

On NSE, it was down by 3.80% to settle at ₹61,540.

MRF Ltd on Friday reported a 95.07% decline in its consolidated net profit from continuing operations at ₹13.46 crore for the June quarter impacted heavily by the coronavirus pandemic.

In the year-ago period, the company’s consolidated net profit from continuing operations was ₹273.27 crore, MRF said in a regulatory filing.

Revenue from operations in the period under review stood at ₹2,460.70 crore as against ₹4,470.82 crore in the corresponding quarter last fiscal, it added.

“Covid-19 pandemic has severely affected the business environment and the economy,” MRF said.

The group’s plants, offices and godowns were closed when the nationwide lockdown was announced on March 24 in order to reduce the impact of the pandemic, it added.

The total income in June quarter dropped by ₹1,240.58 crore as compared to the preceding March quarter. When compared to the year-ago period, total income was down by ₹2,072.03 crore, the company said.