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
MRF Q3 profit halves as rubber prices soar The Hindu Business Line (India)
High input costs halve MRF net Economic Times (India)
MRF profit slips 51% on rise in raw material cost MyDigital FC (India)
77 pc jump in net profit for MRF Economic Times (India)
MRF Apr-June net halves as input costs surge LiveMint (India)
MRF June qtr net profit declines by 51 pc at Rs 62 crore Economic Times (India)