The standalone net profit of leading tire manufacturer MRF Ltd. for the fourth quarter ended March shrank 51% to £1.57 billion due to the challenges of the Ukraine war, rising commodity prices and uncertainties surrounding COVID-19.
During the period, operating income rose 9.8% to £5,200m and included £87m in subsidies received from state governments. Tax expenses fell from £94m to £56m. Exports for the full year rose 33.45% to £1,779 billion, it said in a statement.
Despite best efforts, the company has not been able to fully offset raw material cost increases, which have reached unprecedented levels. Post-pandemic market conditions have also not been favorable to absorb such frequent price hikes, MRF said.
Management assured that MRF would do its best to offset the cost increases in the coming months, saying that the operations were also hampered by the uncertainties caused by the COVID-19 pandemic earlier in the year, raw material availability issues and also challenges from the Ukraine war.
On Wednesday, the board recommended a final dividend of £144 per share. It had previously paid two interim dividends of £3 each, bringing the total to £150 per share.
The Board approved the reappointment of full-time directors Samir Thariyan Mappillai and Varun Mammen for a five-year term beginning August 4. Mr. Samir is the son of KM Mammen, CMD.
