Tyre major MRF today posted 20.41 percent increase in its net profit at ₹345.32 crore for the fourth quarter ended March 31, 2018.
The company had reported a net profit of ₹286.77 crore during the same period of the previous fiscal.
MRF said in a regulatory filing that the income of the company rose to ₹3,944.75 crore for the fourth quarter, as compared with ₹3,778.23 crore in the same period of 2016-17.
MRF claimed, “In the last fiscal, the introduction of the landmark goods and services tax (GST) brought in some uncertainties as businesses adjusted to the new tax regime. However, a good monsoon resulted in a healthy upswing in the agrarian economy and stoked a recovery in rural demand”.
It, however, added that escalation in the cost of crude based inputs remains a concern and will add pressure to the bottom-line.The company added that “At the same time, the competitive intensity in the industry continues to remain at fever-pitch due to anticipated ‘on-streaming’ of several greenfield and brownfield capacities by many players in the months ahead”.
The company also recommended a final dividend of ₹54 per share. The company stated it has already declared and paid two interim dividends of ₹3 per share for the financial year ended March 31, 2018.
It also added that with the recommendation of a final dividend of ₹54 per share, the total dividend for the above period works out to ₹60 per share.