PremiumTyre manufacturer MRF Ltd missed second quarter profit estimates on Tuesday, as soaring input costs and supply chain issues weighed, offsetting a rise in revenue. The company's standalone net profit from continuing operations fell over 32% to ₹124 crore for the three months ended September 2022 as compared to ₹183 crore a year earlier. Meanwhile, MRF's revenue from operations rose 18.4% to ₹5,719 crore as compared to ₹4,831 crore year-on-year (YoY).
Meanwhile, along with the announcing its Q2 FY23 earnings, MRF said its board also approved and declared an interim dividend along with fixing record date for the same.
“In the said Meeting, the Board of Directors has declared an Interim Dividend of ₹3/-per equity share (30%) for the financial year ending 31st March, 2023. The company has fixed Friday, 18th November, 2022 [18.11.2022], as the record date for the purpose of payment of Interim Dividend. The Interim Dividend declared will be paid on or after 2nd December, 2022 [02.12.2022]," MRF informed in the exchange filing.
The tyre manufacturing industry has been grappling with high input costs as soaring global inflation hiked prices of raw materials such as rubber.
Aside of financials, the company's board has also approved enhancement in the issue of Non-Convertible Debentures through private placement from ₹100 crore earlier to ₹150 crore.
MRF Chairman K.M. Mammen had said in July that supply issues for raw materials, inflicted by Russia's invasion of Ukraine, and low demand due to soaring fuel costs played spoilsport for the company and the industry at large.