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MRF Q4 net profit doubles to Rs 341 cr, declares Rs 169/share dividend

Company says it recorded growth in all product groups as increase in raw material prices continued

Tyres

BS Reporter Chennai

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Tyre manufacturer MRF on Wednesday reported a consolidated net profit of Rs 340.67 crore in Q4 FY23, rising 106 per cent from Rs 165.21 crore in the same quarter in FY22.

The latest revenue figure was aided by higher vehicle sales and cheaper rubber prices. The company’s total income in Q4 FY23 was seen at Rs 5,911.51 crore, up 10 per cent from Rs 5,370.83 crore during the Q4 of 2021-22. The company’s FY23 net profit was up 15 per cent at Rs 768.96 crore from Rs 669.24 crore in 2021-22. Total income increased 18 per cent to Rs 23,261.17 crore in FY23, up from Rs 19,633.71 crore in FY22.

The company's consolidated exports in FY23 was Rs 1877 crore as against Rs 1791 crore in the previous year. “Revenue from operations for 2022-23 registered good growth over the previous year. The increase in sales was a result of growth in all product groups. The unprecedented increase in raw material prices, which was witnessed during (the) financial year 2021-22 due to the COVID pandemic and also the war in Ukraine, extended into the current financial year,” said the company in a statement.

“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 added.

MRF’s board of directors recommended a final dividend of Rs 169 (1690 per cent) per share of Rs 10 each. The company has already declared and paid two interim dividends of Rs.3/- each (30 per cent) 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/- ( 1750 per cent) per share of Rs 10 each.

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First Published: May 03 2023 | 6:02 PM IST

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