Tyre major MRF posted a 50.45 per cent drop in its net profit to Rs 31.74 crore for the year ended September 30, 2001, compared with Rs 64.06 crore in the previous corresponding period. Total income declined by 10 per cent to Rs 1,718.04 crore against Rs 1,908.85 crore in the previous year.
The company today, however, announced a final dividend of 90 per cent for the year ended September 30, 2001. With the two interim dividends of 30 per cent each already paid out, the total payout for the year works out to 150 per cent.
But the MRF share lost ground in afternoon trades, reflecting the market's disappointment with the results. The stock came off its intra-day high of Rs 751.90 to close at Rs 657.95 on the Bombay Stock Exchange.
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In the last 12 sessions, the scrip has lost 16 per cent to Rs 678.20 on December 20, 2001 from Rs 805 on December 3, 2001. Volumes dropped to 894 shares from 8,637 shares in the same period.
Incorporated in 1960, the Chennai-based MRF is the country's largest tyre-maker. It manufactures automobile, aircraft and cycle tyres and tubes. The tyres are sold under the trade name MRF. The company also produces other industrial products made of rubber such as conveyer belts, hoses among others. Its products include Nylogrip, Zigma, Tyredrome. Its subsidiary companies are Funskool (India), MRF Corp and MRF International.
The company has its works at Tirurottiyur, Arakkonam, Medak, Kottayam and Goa. According to the latest report of Tire Business, published by Crain Communications of the US, MRF ranks 12th as a global tyre manufacturer. MRF has emerged as the sole supplier of truck tyres to Volvo. It is the largest supplier of radial car tyres (40 per cent share) to Telco's Indica with a monthly supply of 10,000 tyres.
MRF's tyres are exported to over 65 countries worldwide. Within India, MRF straddles the sub-continent with a distribution network of over 2,500 outlets.
As on September 30, 2001, the promoters' holding in MRF was 25.05 per cent; mutual funds and Unit Trust of India hold 9.56 per cent, banks, financial institutions and insurance companies hold 12.96 per cent, foreign institutional investors account for 4.75 per cent, private corporate bodies 16 per cent, Indian public 30.58 per cent and non-resident Indians along with overseas corporate bodies hold 1.07 per cent.