MRF posts 128% rise in profit

The impressive jump in profits was attributed by the company to higher realisations due to falling rubber prices and better "brand management"which translates into better realisation on per unit sales.

On the other hand operating margins were up by 48 per cent with the operating profit moving up from Rs 104.44 last year to Rs 155.51 this year. Interest costs have also dropped by Rs 2.23 crore.

The profit before taxation and depreciation (PBTD) has increased by 83 per cent from Rs 64.22 crore to Rs 117.52 crore. Theprovision for taxation has tripled from Rs 7 crore for the corresponding period last year to Rs 22.50 crore this year. Depreciation has also increased by Rs 8.12 crore.

Speaking to The Indian Express, Philip Eappen, vice president marketing and official spokesperson for MRF Ltd, said the turnover had increased in spite of a dull market. The higher realisations were due to the fact that MRF had not entered into any discount pricing and hence the realisations were better.

But the main factor contributing to the better results was the fall in rubber prices by Rs 6 per kg.

MRF was also not much affected by the slump in the truck market as much of its sales in the truck tyre segment came from the replacement market and not the OEM market, Eappen said. Passenger car tyre sales had also been maintained as usual.