Leading tyre maker MRF has reported a net profit of ₹1,395 crore for the year ended March 31, compared with a net profit of ₹1,097 crore in the previous fiscal.
Profit before exceptional items and tax stood at ₹1,399 crore (₹1,609 crore).
The net provision for tax (current tax and deferred tax) for FY20 was ₹4 crore (₹512 crore in FY19) as the company elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the taxation laws (Amendment) Ordinance, 2019.
Accordingly, the company has recognised provision for Income Tax for the year ended March 31, 2020 and re-measured the deferred tax liabilities/ assets on the rates prescribed in the said section.
After making provision for income tax, the net profit for FY20 came in at ₹1,394.98, according to a company statement.
Revenue from operations grew marginally to ₹15,991 crore against ₹15,837 crore in FY19. Exports reported higher revenue at ₹1,651 crore, against ₹1,566 crore in FY19.
For the quarter ended March 31, the company’s net profit stood at ₹669 crore (₹294 crore), while revenue from operations was lower at ₹3,615 crore (₹4,073 crore).
The Board has recommended a final dividend of ₹94 per share (940 per cent) for the year ended March 31. With two interim dividends of ₹3 each paid during the year, the aggregate dividend for FY20 is ₹100 per equity share of ₹10 each.
The tyre industry has been facing market demand problems emanating from the crisis that the automobile sector has been confronting for some time. The way forward is not clear as the pandemic has brought in uncertainties both for the automobile sector and for the tyre industry. However, the Government’s announcement of putting restrictions on the import of tyres is likely to be of immense help to the tyre industry at a difficult time like this, the statement said.
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