Leading tyre maker MRF has reported a 12 per cent fall in its net profit at ₹263 crore for the quarter ended September 30 when compared to a profit of ₹300 crore in the same period last year, on the back of increased expenses including higher raw material costs.

Its profit before exceptional items and tax stood ₹394 crore as against ₹441 crore. Raw material costs were higher at ₹2600 crore when compared with ₹2198 crore.

Employee benefits expenses, depreciation and amortisation expenses were higher at ₹288 crore (₹270 crore) and ₹200 crore (₹174 crore) respectively. Other expenses were also significantly higher at ₹692 crore as against ₹562 crore in Q2 of previous fiscal. Total revenue from operations stood at ₹3,928 crore during July-September quarter of this fiscal when compared with ₹3,591 crore in a year-ago quarter, posting an increase of nine per cent.

For the half year ended September 30, 2017, net profit of the company was higher at ₹524 crore when compared with ₹406 crore in the same period of previous fiscal.

Its profit before exceptional items and tax stood ₹791 crore as against ₹576 crore.

Revenue from operations stood at ₹7,784 crore compared with ₹7,563 crore in the first half of previous fiscal.

The Board has recommended an interim dividend of ₹3 per equity share and it will be paid on or before November 28.

The Board on Thursday approved the re-appointment of KM Mammen as Managing Director of the Company for a period of five years with effect from February 8, 2019. Approval of shareholders will be sought through postal ballot.

KC Mammen, Non-Executive Director of the Company, has submitted his resignation and will be stepping down from the Board effective November 9, 2018.

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