In the stock market, surprising things can happen. Today, MRF shares saw a big jump that most investors didn’t expect. On Thursday, MRF shares started at ₹1,35,497.55. In just 36 minutes, the price went up by ₹10,853. Here’s why this happened.
Madras Rubber Factory Limited (MRF) is the main company in the MRF group, which makes tires. The company’s share price went up a lot, and there’s a reason for this.
On Thursday (August 8), MRF Limited released its financial results for the April-June quarter. The company’s revenue went up, and after the results were announced, the share price jumped. It increased by 5% to an intraday high of ₹1,42,285. The day before, the shares closed at ₹1,34,661. This means investors made ₹6,900 per share. The share price rose by ₹10,853 in just 36 minutes today.
The April-June quarter was good for MRF in terms of revenue, but profits and margins went down. The company’s profit fell from ₹581 crore to ₹563 crore compared to last year. However, revenue increased from ₹6,323 crore to ₹7,078 crore. The operating profit also went up from ₹1,114 crore to ₹1,138 crore.
During this quarter, MRF’s other income rose by 13% to ₹84.04 crore, compared to ₹74.69 crore in the same period last year.
The company’s total expenses for the first quarter went up by 14% year-on-year to ₹6,517.6 crore, from ₹5,727.92 crore in the same quarter last year. Even with this increase, the company’s profit margin fell from 17.6% to 16.1% year-on-year.