MRF slips after Q4 PAT drops over 51% YoY

MRF fell 2.74% to Rs 82,600.65 after the company’s consolidated net profit declined 51.1% to Rs 332.15 crore in Q4 FY21 from Rs 679.02 crore in Q4 FY20.

Revenue from operations increased 30.7% year-on-year (YoY) to Rs 4,816.46 crore during the quarter.

Total expense jumped 28.6% YoY to Rs 4,425.21 crore in the fourth quarter, due to higher raw material costs (up 33.9% YoY), higher other expenses (up 16.2% YoY) and higher depreciation charges (up 11.8% YoY).

Profit before tax in Q4 FY21 stood at Rs 448.99 crore, up 47.8% from Rs 303.82 crore in Q4 FY20. Current tax expense rose 26.9% to Rs 96.62 crore in Q4 FY21 over Q4 FY20.

The tyre maker recorded 10.2% decline in consolidated net profit to Rs 1,277.07 crore on 0.5% fall in revenue from operations to Rs 16,163.19 crore in FY21 over FY20.

The company’s board of directors have recommended a final dividend of Rs 94 per share and a special dividend of Rs 50 per share.

The second phase of the pandemic has affected our business due to the continuing lockdown in different parts of the country. It is hoped that in a month or two the situation across the country will turn more stable enabling the business to get back to normalcy,” the company said in a statement.

MRF manufactures and distributes tyres and tubes for automobiles, aircrafts, motorcycles and cycles.

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