Amid concerns over the rise in raw material prices and steep increase in tyres imports from China, India's leading tyre marker MRF has posted healthy growth in revenues and profit for the year ended September 30, 2007 when compared with the previous year.For the year ended September 30, the company posted 115% growth in net profit at Rs 171.78 crore, compared with Rs 79.91 crore for the year ended September 30, 2006. "The growth in net profit was partially due to impact of price hike in 2005-06, change in product mix and stabilisation of rubber prices," a company official said.Profit before tax stood at Rs 260.96 crore as against Rs 99.81 crore (including exceptional income of Rs 36.41 crore) in the previous year. "This has been achieved despite steep increase in input costs," a company statement said.The company's gross sales stood at Rs 5,041.20 crore, making it the first Indian tyre company to cross the Rs 5,000-crore mark, on the back of sales growth in the commercial, car radials and two-wheeler segments. MRF posted gross sales of Rs 4,248.31 crore for the year ended September 30, 2006. "As we focus more on the aftermarket, we are able to tide over slowdowns in some way and post better sales growth," said the company official.Net sales of the company increased 18 per cent to Rs 4,411 crore from Rs 3,738.85 crore a year earlier. Exports during the year stood at Rs 492.34 crore from Rs 502.55 crore in the previous year.The board of directors of the company has recommended a final dividend of 140% for 2007. With two interim dividends of 30% each paid out earlier this year, the aggregate dividend for the year stands at 200%.
