Full-year profits jump at MRF, despite poor Q4

ERJ staff report (DS)

Chennai, India - MRF Ltd reported strong growth in profits for the 12 months to 30 Sept 2010, but the results for the final three months were less spectacular.

For the 12 months, MRF said sales jumped to Rs 80 804 million (euro 1333 million), from Rs 61 419 million a year previously. Operating income also rose to Rs 5668 million (euro 93.5 million) from Rs 4420 million a year previously.

The company did not release stand-alone Q4 figures, but a quick calculation shows that profits fell sharply. In the nine months to 30 June 2010, the company reported sales of Rs 53 459 million, up from Rs41 896 million a year earlier, and operating profits of Rs 4354 million, up from Rs 2732 million a year earlier.

This means revenues in the final quarter were Rs 21 083 million, up by half from Rs 14 768 million a year earlier, but operating profits fell to Rs 1314 million from Rs 1689 milllion.

"Rubber price increase is continuously a matter of concern. That is not showing any softening. I don't see any respite in rubber over the next few quarters," Koshy Varghese, executive vice-president, marketing, told Reuters.

Local papers reported that MRF is due to spend close to Rs 10 000 million (euro 165 million) in the current fiscal year (ends Sept 2011), of which some will be used to to build a new plant at Trichy in Tamil Nadu.

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Financial data from MRF

MRF full-year net rises 40 percent The Hindu Business Line (India)

MRF full year net surges; sees tougher days ahead News Centre (India)

MRF India Infoline (India)

MRF Full Year Net Surges Business World (India)