MRF net plummets 75%

MRF Ltd (MRF) has witnessed a 75.46 per cent dip in net profit at Rs 28.80 crore for the year ended September 30, 2004 against Rs 117.38 crore recorded in the same period last year.

The board has recommended a final dividend of 140 per cent on the paid-up capital for 2004, taking the aggregate dividend for the year to 200 per cent, including two interim dividends of Rs 30 each.

According to information in a press release, MRF has registered a 16.67 per cent increase in total income to Rs 3,034.17 crore in the current year against Rs 2,600.44 crore achieved last year.

The company claims the results achieved were in spite of adverse market conditions that included increase in cost of inputs and its inability to pass on the cost increase in selling prices.

MRF's gross profit before taxation and exceptional item fell by 10.40 per cent at Rs 84.23 crore the year ended September 30, 2004 (Rs 94.01 crore).

The company had something to celebrate on the front of exports with an increase of 9.81 per cent in the current year at Rs 351.18 (Rs 316.72 crore). The depreciation provided for the current year stood at Rs 95.88 crore as against Rs 91.91 crore in the previous year.

MRF is hopeful that the improvement in the commercial vehicle market will help improve the offtake of tires gradually over time.

However, the steep increase in price of natural rubber, petroleum based inputs and lower availability of some materials internationally is proving to be a hitch to the company. It expects that cost-cutting measures and market preferences for its products will help in the present situation.

The company's annual general meeting will be held on March 17, 2005 and the transfer books and register of members will remain closed on March 07 and March 17, 2005 for the payment of final dividend for the year ended September 30, 2004 to those shareholders whose name appear on the register of members on March 17, 2005.