Tyre stocks surge up to 13% amid reports of price rise
MRF, India's highest-priced stock, gained attention on Monday's BSE session due to reports of a price increase effective July 18. This led to a surge in tyre stocks: JK Tyre & Industries rose 13%, CEAT jumped 7%, Apollo Tyre gained 5%, and MRF shares increased 4% to Rs 1,34,281.
India's highest-priced stock, , gained significant attention on Monday's BSE trading session following reports of a price increase effective July 18. These reports caused a surge in the stock prices of other tyre companies by as much as 13%.Among the , JK Tyre & Industries surged 13%, while shares of jumped 7%, and Apollo Tyre gained 5%. also rose 4% to Rs 1,34,281.
MRF announced a 2% price increase for truck tyres and a 3% to 7% hike for passenger car and radial tyres. However, there was no price increase for two-wheeler tyres, as reported by CNBC-TV18.
This price hike is MRF's first since a minor reduction in March 2024 across certain categories. Despite this increase, the new prices still lag behind recent cost increases.
MRF's move follows similar price hikes by Apollo Tyres, CEAT, and JK Tyres, all of which had already raised prices by 3%.
In Q4 FY24, MRF reported a consolidated net profit of Rs 396 crore, up from Rs 341 crore reported in the year-ago period, marking a 16% year-on-year (YoY) increase. However, the consolidated profit after tax was down by 22% on a sequential basis, compared to Rs 510 crore reported in the October-December quarter.
Meanwhile, the revenue from operations for the reported quarter stood at Rs 6,349 crore versus Rs 5,842 crore in Q4 FY23, up 9% on a YoY basis.
The net profit margin in the reported quarter stood at 6.15%, down on a QoQ basis from 8.17% in Q3 FY24 but up from 5.76% in Q4 FY23.
On a standalone basis, the profit was reported at Rs 379.55 crore for the January-March quarter, down 8% from Rs 410.66 crore reported in Q4 FY23. On a QoQ basis, it declined by over 25%. The standalone revenue was reported at Rs 6,215 crore, up 8.50% over Rs 5,725 crore reported in the year-ago period. In the previous quarter, the standalone revenue stood at Rs 6,048 crore.
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Source: Stocks-Markets-Economic Times
