Says will do its best to recover raw material cost increases in the coming months
Leading tyre maker MRF Ltd has reported a 50 per cent drop in its standalone net profit at ₹157 crore for the quarter ended March 31, 2022, as compared to ₹317 crore in the year-ago quarter, on the back of cost increases.
Its revenue from operations stood at ₹5,200 crore as against ₹4,738 crore in Q4 FY21. The cost of materials consumed stood at ₹3,244 crore as compared to ₹2,875 crore.
For FY22, MRF’s standalone net profit declined by 48 per cent to ₹647 crore as against ₹1,249 crore in FY21. Its standalone total income came in at ₹19,304 crore (₹16,129 crore); profit before tax at ₹879 crore (₹1,700 crore); and tax expenses at ₹231.82 crore (₹451 crore).
Revenue from operations for Q4 and the full year are at ₹87.03 crore and ₹167.40 crore, respectively being subsidies received from State governments. The company’s exports for FY22 were higher at ₹1,779 crore as against ₹1,333 crore for the previous year.
Impacted by uncertainties
Despite best efforts, the company has been unable to recover the raw materials cost increases fully. Market conditions, after the pandemic, are also not favourable to absorb such frequent price increases. The company will do its best to recover the same in the coming months, said a statement.
The operations were also adversely impacted by the uncertainties posed by the Covid-19 pandemic in the early part of the year, issues connected with the availability of raw materials and also challenges posed by the Ukrainian war, it added.
The board has also recommended a final dividend of ₹144 (1,440 per cent) per share of ₹10 each. The company had already declared and paid two interim dividends of ₹3 each (30 per cent) per share for FY22. The aggregate dividend for FY22 works out to ₹150 (1,500 per cent) per share of ₹10 each.