BackMRF Q4 profit rises to Rs375.9 crore
MRF, which has been hurt by the onslaught of cheaper Chinese imports, says net sales rose 4% to ` 3,440 crore
Premium
Chennai: India’s largest tyre maker MRF Ltd reported a weaker-than-expected profit in the March quarter as it was forced to offer bigger discounts to boost sales.
Net profit rose to 375.9 crore in the three months ended March from 332.6 crore in the year-ago period.
The Chennai-based company, which has been hurt by the onslaught of cheaper Chinese imports, said net sales rose 4% to 3,440 crore.
Analysts polled by Bloomberg had on average expected MRF to earn profit of 408.40 crore on net sales of 3,399.40 crore.
Local manufacturers of truck and bus radials (TBRs) have been cutting prices and introducing tyres without warranty to fight the flood of Chinese imports, Mint reported earlier this year.
“The worst seems to be over for the heavy commercial vehicle industry and the current production trends indicate an upswing. This augurs well for the replacement market demand in the long term," the company said in a statement on Tuesday.
“The two wheeler and passenger car segments continue to be flat in view of the low demand from rural India and it is expected that a normal monsoon may revive demand," MRF added.
The company which was previously on an October-September financial year, also announced its plans to switch to an April-March calendar.
MRF’s board also approved a dividend of 94 per share. It had already declared and paid two interim dividends of 3 per share for the above period.
“With the two interim dividends paid, the aggregate dividend for the period is 100 per share," the company said.
On Tuesday, MRF shares ended 2.09% lower at ₹ 33,450 apiece on the BSE, while the benchmark Sensex shed 0.81%.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
