Tyre maker MRF on Wednesday said its consolidated net profit surged over two-fold to Rs 341 crore for the March quarter, riding on lower raw material cost.
The company had reported a net profit of Rs 165 crore in the January-March quarter of 2021-22 fiscal from the continuing operations.
Revenue from operations rose to Rs 5,842 crore for the fourth quarter as against Rs 5,305 crore in the year-ago period, MRF Ltd said in a regulatory filing.
For the full year ended March 31, 2023, the tyre major reported a net profit of Rs 769 crore as compared with Rs 669 crore in the fourth quarter of 2021-22 fiscal.
Revenue from operations rose to Rs 23,008 crore for FY23 as against Rs 19,317 crore in FY22.
"The increase in sales was a result of growth in all product groups. The unprecedented increase in raw material prices, which was witnessed during financial year 2021-22 due to the Covid pandemic and also the war in Ukraine, extended into the current financial year," the company said.
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, it added.
"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," MRF said.
The company said its board recommended a final dividend of Rs 169 (1,690 per cent) per share of Rs 10 each.
Shares of the company on Wednesday ended 5.57 per cent up at Rs 93,528.40 apiece on the BSE.
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