MRF misses estimates as input costs dent margin performance

Chennai (Tamil Nadu) [India], November 8 : MRF on Tuesday posted a decline of 32.2 per cent in its standalone net profit to Rs 1.24 billion for the quarter ended September, against Rs 1.83 billion in the year-ago period.
With this performance, the Indian tyre maker had missed second-quarter profit estimates, as soaring input costs and supply chain issues weighed, offsetting a rise in revenue. The company said its revenue for the reviewed quarter was Rs 5,826.3 crore, against Rs 4,907.8 crore during the same period last year.
Operating profit or earnings before interest, taxes, depreciation, and amortisation (Ebitda) declined 8 per cent from last year to Rs 480.6 crore. The fall in operating profit is due to spiralling expenses, which increased 21 per cent from last year while finance costs increased 29 per cent year-on-year.
Revenue from operations rose 18.4 per cent to Rs 57.19 billion.
September quarter's net profit declined 24 per cent to Rs 145.4 crore on a consolidated basis, according to the statement from MRF.
In the statement, the company said the board also approved a dividend of Rs 3 per share, record date for which has been set as November 18. Its board has also approved enhancement in the issue of non-convertible debentures through private placement from Rs 100 crore earlier to Rs 150 crore.