Tyre major MRF Limited has reported a 20% growth in its net profit for the quarter ended December to Rs 388.15 crore as compared to Rs 323.51 crore in the same quarter previous fiscal.
The total income declined to Rs 3,260.90 crore for the quarter under review as against the total income of Rs 3,353 crore in the same quarter previous fiscal. The company, in a press release, said that in the last one year there has been a reduction in prices to the extent of 10% in the commercial tyre segment.
The demand outlook continues to be sluggish and the situation has worsened with the unregulated imports from China, the company stated. Over the last few years, the truck and bus industry has remained flat in tersm of production. Incidentally, this segment is the largest contributor to the exchequer and also the largest revenue generator for the tyre industry.
Unregulated import of Chinese truck radial tyres is leading to non-utilisation of capacity put up by Indian manufacturers, consequently affecting all stakeholders in the supply chain. The tyre industry is going through a critical phase and any other additional capacity being put up would depend largely on cheaper imports being regulated, so that there is a level playing field for all manufacturers, it added.