New Delhi: Tyre major MRF on Thursday posted 20.41% increase in its net profit at Rs345.32 crore for the fourth quarter ended 31 March 2018.

The company had reported a net profit of Rs286.77 crore during the same period of the previous fiscal. Total income of the company rose to Rs3,944.75 crore for the fourth quarter, as compared with Rs3,778.23 crore in the same period of 2016-17, MRF said in a regulatory filing.

For the year ended 31 March 2018, the company posted a consolidated net profit of Rs1,131.61 crore, down 23.85%, as compared with Rs1,486.22 crore in the 2016-17 . The company’s board, which met on Thursday, also approved to raise up to Rs500 crore through issue of non-convertible debentures on a private placement basis.

“In the last fiscal, the introduction of the landmark goods and services tax (GST) brought in some uncertainties as businesses adjusted to the new tax regime. However, a good monsoon resulted in a healthy upswing in the agrarian economy and stoked a recovery in rural demand," MRF said.

It however added that escalation in the cost of crude based inputs remains a concern and will add pressure to the bottom-line. “At the same time, the competitive intensity in the industry continues to remain at fever-pitch due to anticipated ‘on-streaming’ of several greenfield and brownfield capacities by many players in the months ahead," the company added.

The company’s also recommended a final dividend of Rs54 per share. The company said it has already declared and paid two interim dividends of Rs3 per share for the financial year ended 31 March 2018.

With the recommendation of final dividend of Rs54 per share, the total dividend for the above period works out to Rs60 per share, it added. Shares of MRF ended 3.39% down at Rs77,045.75 on BSE.