Tyre major MRF announced an impressive financial result for the fourth quarter of the fiscal year 2022-23, with its standalone net profit more than doubling to Rs 410.66 crore from nearly Rs 157 crore in the year-ago period. The company’s total revenue also rose to Rs 5,793 crore, up from Rs 5,265 crore in Q4FY22.
For the entire fiscal year, MRF’s net profit increased to just over Rs 816 crore compared to just over Rs 647 crore in the previous fiscal year. The company’s consolidated total income was just over Rs 23,261 crore, compared to Rs 19,633.7 crore in the previous year. The consolidated profit before tax stood at nearly Rs 1,070 crore, up from nearly Rs 908 crore for the year-ago fiscal. The tax expense for the year was at nearly Rs 301 crore, while the previous year’s figure was around Rs 238.7 crore. After making a provision for tax expense, the consolidated net profit for FY23 was nearly Rs 769 crore, compared to just over Rs 669 crore for the previous financial year. MRF’s consolidated exports for the year were Rs 1,877 crore, up from Rs 1,791 crore in FY22.
According to the company, the growth in all product groups led to an increase in sales, which resulted in a good growth in revenue from operations for 2022-23, as stated in the company’s statement. Despite the good financial results, MRF faced unprecedented challenges due to the Covid-19 pandemic and the war in Ukraine, leading to an increase in raw material prices, which extended into the current financial year. The company’s profitability remained low during the first three quarters of the year, despite its efforts to pass on the cost increases in a graduated manner. However, with the easing of raw material prices during the later part of the year, the benefits of lower raw material costs resulted in better profitability in the fourth quarter.
The company’s board of directors also declared a final dividend of Rs 169 (1690%) per share of Rs 10 each, adding to the two interim dividends of Rs 3 each (30%) per share that were already declared and paid for FY23. With that, the aggregate dividend for the year works out to Rs 175 (1750%) per share of Rs 10 each.
The strong financial performance of MRF is a testament to the company’s resilience and its ability to navigate through the challenging economic landscape caused by the pandemic and other external factors. MRF is one of the leading tyre manufacturers in India and has a wide range of products, including tyres for passenger vehicles, two-wheelers, trucks, buses, and other vehicles. The company has a strong presence in the domestic market and has also been expanding its global footprint over the years. With its continued focus on innovation, quality, and customer service, MRF is well-positioned to drive growth and create value for its stakeholders.
MRF has been in the tyre manufacturing business for over six decades and has established itself as a brand synonymous with quality, reliability, and performance. The company has a strong R&D team that works on developing innovative products and improving the existing ones to meet the evolving needs of its customers.
Apart from tyres, MRF also has a presence in other businesses such as toys, paints, coats, and conveyor belts. However, the company’s tyre business remains its flagship and accounts for the majority of its revenue and profits.
The Indian tyre market is highly competitive, with several players vying for market share. MRF has been able to maintain its leadership position by focusing on quality, innovation, and customer service. The company has a wide distribution network that spans across the country and has been expanding its global presence as well.
