MRF posts 20% rise in Q4 net profit at Rs 345 crore

Tyre major MRF on Thursday posted 20.41% increase in its net profit at Rs 345.32 crore for the fourth quarter ended March 31, 2018.

The company had reported a net profit of Rs 286.77 crore during the same period of the previous fiscal.

Total income of the company rose to Rs 3,944.75 crore for the fourth quarter, as compared with Rs 3,778.23 crore in the same period of 2016-17, MRF said in a regulatory filing.

For the year ended March 31, 2018, the company posted a consolidated net profit of Rs 1,131.61 crore, down 23.85%, compared with Rs 1,486.22 crore in the 2016-17 .

The company’s board, which met on Thursday, also approved to raise up to Rs 500 crore through issue of non-convertible debentures on a private placement basis.

“In the last fiscal, the introduction of the landmark goods and services tax (GST) brought in some uncertainties as businesses adjusted to the new tax regime. However, a good monsoon resulted in a healthy upswing in the agrarian economy and stoked a recovery in rural demand,” MRF said.

It however added that escalation in the cost of crude based inputs remains a concern and will add pressure to the bottom-line.

“At the same time, the competitive intensity in the industry continues to remain at fever-pitch due to anticipated ‘on-streaming’ of several greenfield and brownfield capacities by many players in the months ahead,” the company added.

The company’s also recommended a final dividend of Rs 54 per share. The company said it has already declared and paid two interim dividends of Rs 3 per share for the financial year ended March 31, 2018.

With the recommendation of final dividend of Rs 54 per share, the total dividend for the above period works out to Rs 60 per share, it added.

Shares of MRF were ended 3.39% down at Rs 77,045.75 on the BSE.