MRF Q3 Net Skids 48%

Chennai, July 29: | Updated: Jul 30 2003, 05:30am hrs
Despite an overall increase in sales, tyre major MRF Ltd on Tuesday reported a lower net profit for the third quarter ended June 30, 2003, compared to the same period of the previous year. The companys net profit was hit by an unprecedented surge in prices of natural rubber, one of the main inputs of the company, during the quarter under review.

While the net sales of the company has registered a growth of 9.4 per cent, the company has posted a 48 per cent drop in its net profit during the quarter ended June 30, 2003. An MRF statement said, net profit of the company stood at Rs 15.33 crore as against Rs 29.47 crore in the corresponding period of the previous year.

Net sales stood at Rs 643.80 crore (Rs 588.43 crore). Interest charges and depreciation of the company during the period were Rs 10.37 crore and Rs 23.71 crore respectively.

Philip Eapen, vice-president, MRF, said that a major reason for the drastic fall in net profit was the unpre-cedented rise in natural rubber prices during the quarter. On sales-wise, we have done better compared to the previous year. However, our net profit was hit by the spurt in rubber prices which even went up to Rs 50 a kg during the period, he said.