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MRF Q3 net skids on higher raw material costs

Board declares dividend of ₹3 a share

Tyre major MRF’s net profit from continuing operations for the third quarter ended December 2018 dipped by 17.99% to ₹279.26 crore against ₹340.51 crore in the year-earlier period, on increasing raw material costs.

During the period under review, the company’s revenue from operations saw a marginal increase of 6% from ₹3,799 crore to ₹4,034 crore. Total expenditure of the firm increased by 12.58% to ₹3,750.25 crore from ₹3,331.14 crore.

Raw material costs for the quarter accounted for almost 28% of the total expenditure of ₹2,712.49 crore. Compared with the corresponding year-earlier period, the raw material costs for the third quarter increased up by 23.53%.

Metrics for nine months

For the nine-month period, net profit from continuing operations grew by 7.5% to ₹803 crore from ₹747 crore. Revenue from operations increased by 3.53% to ₹11,763.55 crore from ₹11,361.69 crore. Total expenditure grew by 3.77% and raw material costs by 13.33%, respectively.

The board declared a second interim dividend of ₹3 per share payable by February 25. The company also announced the appointment of Vimla Abraham as an independent director.

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