Business Daily from THE HINDU group of publications
Friday, Jul 25, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Friday, Jul 25, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate Results
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Tyres MRF’s net down on cost pressures Our Bureau Chennai, July 24 MRF Ltd’s net profit for the April-June quarter of the current year declined to Rs 31.90 crore against Rs 42.50 crore in the corresponding quarter of last year. This was mainly because of rise in costs of key inputs such as rubber and carbon black. This was despite 12 per cent increase in turnover to Rs 1,279 crore against Rs 1,138 crore for the corresponding quarter of last year. Mr Koshy Varghese, Executive Vice-President, pointed out that prices of natural rubber increased to Rs 135 a kg from Rs 90 a kg in the comparable quarter of last year. Other raw materials, such as synthetic rubber, poly butadine (both derivatives of crude oil) and carbon black also contributed to cost increase, he said. “We could carry over some raw material stock from the previous quarter and so the impact is less. The impact will be more in the subsequent quarter,” Mr Varghese said. On the increase in staff cost, he said it was primarily due to expansion plans of the company requiring to augment staff strength. Pricing action Answering a question, Mr Varghese said that there was little a company could do in terms of cost control, when costs are rising so fast. He said that MRF would juggle around with product mix to raise contribution. Asked if the company would look at raising prices of its tyres, he said that a decision on that would depend upon market forces, but noted that the company would have no option but to raise prices if the pressures were so relentless. MRF lifts lockout at Chennai plant MRF’s new unit to help double radial tyre capacity More Stories on : Tyres
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