Tyre major MRF Ltd. has reported a more than 30% drop in standalone net profit for the first quarter to ₹112 crore following a sharp increase in raw material costs.
Revenue from operations jumped 36% to ₹5,599 crore while other income contracted to ₹34 crore from ₹92 crore, the firm said in a statement.
Total expenditure rose 37% to ₹5,481 crore, of which raw materials rise accounted for 26% at ₹4,043 crore. Other expenses rose to ₹918 crore from ₹723 crore.
Revenue from operations included a subsidy of ₹7.12 crore received from State governments.
MRF said that the economic crisis in Sri Lanka led to currency devaluation resulting in remeasurement loss of of ₹2.60 crore on consolidation of its wholly owned subsidiary MRF Lanka Pvt. Ltd.
On Tuesday, the board approved raising of funds through the issuance of non-convertible debentures on private placement basis aggregating to ₹100 crore in one or more tranches.
