Buoyed by softening raw material prices and aftermarket sales, tyre manufacturer MRF Ltd has posted a 60 per cent year-on-year rise in first quarter net profit at Rs 180 crore (from Rs 112 crore same quarter, last year; MRF follows an October-September financial year). Total income grew five per cent to Rs 3,025 crore.
“We did pass on some of the benefits of price reduction to customers. But that was offset by higher aftermarket sales. We are looking to strengthen aftermarket business, given that OEMs are doing badly. But it is a competitive market,” said Koshy Varghese, Executive Vice-President, Marketing.
Aftermarket business accounted for 76 per cent of total revenues in the first quarter, up six per cent over last year.
“Over the last six months or so, the sentiment in the auto industry, both domestic and global, have been bearish. The prospects look bleak over the next six months too,” said Varghese.
MRF’s share price was down 0.53 per cent to Rs 13,160.45 on the BSE on Thursday.