NR costs hit MRF profits for quarter

ERJ staff report (DS)

Chennai, India -- Sales jumped at Indian tyre maker MRF Ltd for the three months ended 20 June 2010, but profits fell by half on higher materials costs.

MRF -- originally called Madras Rubber Factory -- reported sales of Rs 19 254 million (euro 316 million) for the three months, compared with 14 382 million a year earlier.

Costs of raw materials rocketed, however, to Rs 13 671 million, from Rs 7667 million a year earlier. This left a hole in MRF's profits. Profit before interest was just Rs 1072 million, down from Rs 1996 a year earlier.

The company said it had not been able to pass on the extra costs due to competition.

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Press release from MRF

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