MRF, the tire manufacturer, has reported a 106% rise in its consolidated net profit for the fourth quarter of FY23, which stood at Rs 340.67 crore compared to Rs 165.21 crore in the same quarter of the previous year. Increased vehicle sales and lower rubber prices boosted the company’s revenue figures. Its total quarterly income was Rs 5,911.51 crore, up 10% from Rs 5,370.83 crore in Q4 FY22.
MRF’s net profit for the entire year FY23 increased by 15% to Rs 768.96 crore from Rs 669.24 crore in the previous year. The company’s total income for FY23 grew by 18% to Rs 23,261.17 crore from Rs 19,633.71 crore in FY22. The company’s consolidated exports for FY23 stood at Rs 1877 crore, up from Rs 1791 crore in the previous year.
In a statement, the company said that the increase in sales was due to growth in all product groups, despite the unprecedented rise in raw material prices in the previous year caused by the COVID pandemic and the war in Ukraine. The company also noted that it continued to face low profitability during the first three quarters of the year due to efforts to gradually pass on the increased costs. However, with the easing of raw material prices in the latter part of the year, the company experienced better profitability in the fourth quarter.
MRF’s board of directors has recommended a final dividend of Rs 169 (1690%) per share of Rs 10 each. The company has already declared and paid two interim dividends of Rs.3/- each (30%) per share for the financial year ending March 31, 2023. With two dividends of Rs 3/- each paid during the above period, the aggregate dividend for the year works out to Rs 175/- ( 1750%) per share of Rs 10 each.
