InvestorQ : How were the results of MRF for the June 2022 quarter?
indhumathi Sayani made post

How were the results of MRF for the June 2022 quarter?

1 month ago

MRF, the south based tyre major, reported a handsome 36% increase in revenues from operations at Rs5,599 crore for the quarter ended June 2022. This was largely driven by robust demand from the OEM auto sector as well as higher price realizations by the tyre company on its products. However, the negative impact was visible on the profits of the company for the quarter. For instance, the standalone net profits of MRF for the June 2022 quarter fell by 30% to Rs112 crore.

This sharp fall in profits was on account of a sharp spike in material costs in line with the spike in commodity inflation globally. However, other income for the quarter nearly fell to a third at Rs34 crore in the June 2022 quarter. Raw material costs were the culprit as they accounted for nearly 75% of total expenditure and were also responsible for a major chunk of the spike in spending by MRF. One factor has been the economic crisis in Sri Lanka which has resulted in losses in its subsidiary in the island nation.