MRF Q4 net up 39.5 per cent

MRF Ltd,India8217;s top tyre maker,reported a nearly 40 per cent rise in Jan-March net profit but said operating margins may narrow because of a surge in commodity prices.

The EBITDA margins have taken a drop,though our topline has grown. There is a significant cost push,to put it mildly,Koshy Varghese,executive vice president,marketing said.

Prices of natural rubber,a key commodity for tyre makers,had hit a record high of 16,950 rupees earlier in April. They are currently at 16,800 rupees. In the current situation,you cannot pass on that type of an increase into the market.

He however said sales would continue to grow on a buoyant domestic automobile market.