Leading tyre manufacturer MRF Ltd. standalone net profit for the third quarter ended December contracted by 71.49% to ₹145.85 crore, due to higher raw material prices and changes in inventories of finished goods.
During the period under review, revenue from operations rose 6% to ₹4,830 crore. Total expenditure grew by ₹751 crore to ₹4,701.55 crore.
Cost of materials consumed increased by 14% to ₹2,989 crore. Changes in inventories of finished goods saw a loss of ₹106 crore against a gain of ₹224 crore, it said in a regulatory filing.
For the nine months period, net profit dipped by 47% to ₹491 crore, while revenue from operations jumped to ₹13,789 crore from ₹11,184 crore.
Revenue from operations for the quarter and nine months period included an industrial incentive of ₹80.37 crore received from Telangana Government.
On February 10, the board approved the re-appointment of Rahul Mammen Mappillai as MD for a period of five years with effect from May 4, 2022. It also declared a second interim dividend of ₹3 per share.
Regarding a penalty of ₹622 crore levied by the Competition Commission of India on certain tyre manufacturers for ‘cartelisation’ including MRF, the company said it is in the process of pursuing appropriate legal remedies as it has good grounds for a successful appeal based on its assessment. Accordingly, no provision is considered necessary in the financial results.
For all the latest business News Click Here
