Leading tyre maker MRF has reported a decent performance for the fourth quarter ended September 30, 2013, while for the full year it has reported a marginal rise in net sales and a strong growth in net profit, aided by strong replacement demand and lower cost of raw material.
For the fourth quarter ended September 30, 2013, the company posted a net profit of Rs. 184.10 crore as against Rs. 164.76 crore in the year-ago period, a rise of 11.7 per cent. Net sales grew by 5.1 per cent to Rs. 3,145.70 crore from Rs. 2,991.56 crore in the corresponding period of the previous year.
However, its net profit grew by 40.1 per cent to Rs. 802.21 crore for the year ended September 30, 2013, from Rs. 572.36 crore for the year ended September 30, 2012. Profit before other income, finance costs and exceptional items stood at Rs. 1,393.71 crore as against Rs. 959.89 crore in the previous year. Raw material cost as a percentage of net sales fell to 64 per cent from 70 per cent in the pervious year.
Amid depressed auto market conditions, net sales grew by 2.2 per cent at Rs. 12,122.79 crore as against Rs. 11,862.46 crore in the previous year, mainly due to robust replacement demand.
The Board, on Thursday, recommended a final dividend of Rs. 24 per share (240 per cent) for the year 2013. With two interim dividends of Rs. 3 each paid earlier in the year, the total dividend for the year is Rs. 30 per share.
“Whilst the automobile industry is going through a recession which has impacted the overall demand from the original equipment manufacturers, our brand equity and distribution network in the aftermarket has helped us to prevail over the situation. In addition, measures have been taken to improve overall operating performance,” said a company statement.