But this also means that the impact of higher rubber prices might be felt in the forthcoming quarters. The quarter’s operating profit at Rs.840 crore was a significant beat on analysts’ forecast and also a tad higher than the year-ago period. In spite of its size and strong brand equity, MRF Ltd has not been spared Chinese competition that has created havoc in the domestic tyre industry. Any favourable change in key input prices such as rubber or higher sales volumes wil have a positive impact on the stock. The few analysts who track the stock reckon that the reason could be a combination of lower prices and sales volumes during the quarter.

Source: Mint August 11, 2016 21:22 UTC