Leading tyre manufacturer MRF Ltd. standalone net profit for the fourth quarter ended March contracted by 51% to ₹157 crore due to the challenges posed by the Ukrainan war, spiralling raw material prices and uncertainties posed by COVID-19.
During the period under review, revenue from operations grew 9.8% to ₹5,200 crore and it included subsidy of ₹87 crore received from state governments. Tax expense declined to ₹56 crore from ₹94 crore. Exports for full year rose by 33.45% to ₹1,779 crore, it said in a statement.
Despite its best efforts, the company has been unable to recover fully the raw material cost increases which are at an unprecedented level. Market conditions, after the pandemic, were also not favourable to absorb such frequent price increases, MRF said.
Asserting that MRF would do its best to recover the cost increases in the coming months, the management said operations was also adversely impacted by the uncertainties posed by the COVID 19 pandemic in the early part of the year, issues connected with availability of raw materials and also challenges posed by the Ukranian war.
On Wednesday, the board recommended a final dividend of ₹144 per share. Earlier, it had paid two interim dividends of ₹3 each taking the total to ₹150 per share.
The board approved the re-appointments of whole time directors Samir Thariyan Mappillai and Varun Mammen for a period of five years from August 4. Mr. Samir is the son of K.M. Mammen, CMD.
