MRF Ltd has reported a 40 per cent jump in net profit for the second quarter ended March 31, 2013, compared with the corresponding quarter in the previous year due to after sales market and softening rubber prices.
But its income is down three per cent reflecting the lower capacity utilisation of its Kottayam factory.
Net profit for the quarter was Rs 210 crore (Rs 150 crore).
The company follows an October-September financial year.
Total income was Rs 2,906 crore (Rs 2,992 crore) for the quarter. .
Koshy Varghese, Executive Vice-President, Marketing, said the Kottayam factory is not running at full capacity, due to ongoing wage settlement negotiations.
“The factory usually contributes to 15 per cent of turnover, but last quarter it ran only to 30 per cent capacity,” he said.
The overall decline in the automobile sector too, has had an impact. With automobile manufacturers cutting production, MRF’s supply to them has reduced. Varghese does not expect a big revival in fortunes in the near future.
Despite all this, after-market sales has helped the company hold on to profits, said Varghese. Softening rubber prices, in the domestic and global markets, too, have helped.
The company’s shares closed 4.81 per cent higher on the BSE, on Thursday, at Rs 12,898.05.