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MRF FY20 profit rises 25% to Rs 1,422 crore; govt's restriction on tyre import to help industry

For Q4 FY20, MRF posted over two-fold jump in consolidated net profit at Rs 679.02 crore compared to Rs 293.93 crore in Q4 FY19

MRF FY20 profit rises 25% to Rs 1,422 crore; govt's restriction on tyre import to help industry

MRF's board has recommended a final dividend of Rs 94 each per share

MRF, the country's largest tyre manufacturer, on Monday reported 25.05 per cent growth in its consolidated net profit at Rs 1,422.57 crore as against Rs 1,130.61 crore in 2018-19. For the fourth quarter ended March 31, 2020, the tyre manufacturer posted over two-fold jump in consolidated net profit at Rs 679.02 crore.

The company had posted a net profit of Rs 293.93 crore in Q4 FY19, MRF said in a filing to the Bombay Stock Exchange.

For the entire fiscal FY20, the company's revenue from operations stood at Rs 16,239.36 crore as compared to Rs 16,062.46 crore in 2018-19. For Q4 FY20, revenue from operations fell by 10.93 per cent to Rs 3,685.16 crore as compared with Rs 4,137.67 crore in the same period of 2018-19.

On the standalone basis, MRF's net profit more than doubled to Rs 669.47 crore in Q4 FY20 compared to a profit of Rs 293.83 crore recorded in the corresponding period of the previous year. Revenue from operations decreased to Rs 3,625.18 crore from Rs 4,073.45 crore in Q4 FY19.

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The company's export for the year ended March 31, 2020, was Rs 1,651 crore as against Rs 1,566 crore for the previous year ended March 31, 2019.

On COVID-19 pandemic, MRF said the tyre industry has been facing market demand problems emanating from the crisis that the automobile sector has been confronting for some time. "The future is not clear as the pandemic has brought in uncertainties both for the automobile sector and for the tyre industry. However, the government's announcement of putting restrictions on the import of tyres is likely to be of immense help to the industry at a difficult time like this," it added.

Also Read: Apollo Tyres share price rises 4% after firm commissions greenfield unit in Andhra Pradesh

MRF's board has recommended a final dividend of Rs 94 each per share on paid-up equity share capital of the company. The tyre maker has already declared and paid two interim dividends of Rs 3 each per share for the financial year ended March 31, 2020. With the recommendation of final dividend of Rs 94 per share, the total dividend for the above period works out to Rs 100 per equity share of Rs 10 each, it said.

Also Read: JK Tyre and Industries FY20 profit skids 17% to Rs 141 crore, revenue dips 16%

Meanwhile, shares of MRF ended Monday's trade at Rs 65,191.25 apiece, down 1.83, against previous closing price of Rs 66,405.10 on the BSE.

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