Chennai, NFAPost: Tyre major MRF Ltd on Wednesday reported a standalone net profit of Rs 411 crore for the fourth quarter of FY23 as against Rs 157 crore in the corresponding quarter last fiscal, registering an increase of 162% on the back of increased sales volumes and easing of raw material prices. The revenue for the quarter saw a jump of 10% to Rs 5,725 crore as compared to Rs 5,200 crore.
The board of directors has recommended a final dividend of Rs 169 per share of Rs 10 each. The company had already declared and paid two interim dividends of Rs 3 each per share for the financial year ended March 31, 2023. With two dividends of Rs 3 each paid during the above period, the aggregate dividend for the year works out to Rs 175 per share of Rs 10 each.
MRF standalone net profit for FY23 increased by 26% to Rs 816 crore as compared to Rs 647 crore. The revenue stood at Rs 22,578 crore for FY23 as compared to Rs. 18,989 crore in the previous year, registering an increase 19%. Tax expense for the year was at Rs 300.78 crore as against Rs 238.69 crore.
The company’s consolidated exports for FY23 stood at Rs 1877 crore as against Rs 1,791 crore in the previous year. The company said that the increase in sales was a result of growth in all product groups. The unprecedented increase in raw material prices, which was witnessed during financial year 2021-22 due to the Covid pandemic and also the war in Ukraine, extended into the current financial year.
“Despite efforts being taken to pass on the cost increases in a graduated manner, the profitability continued to be low during the first three quarters of the year. However with easing of raw material prices during the later part of the year, the benefits of lower raw material cost resulted in better profitability in the fourth quarter,” it said.
Brand Finance, which is one of the world’s leading independent brand valuation and strategy consultancy, with headquarters in London, has rated MRF as the second strongest tyre brand in the world besides being the most valued tyre brand in India, it added.
