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MRF's Q2 net dips 75 pc to Rs 4.28 cr

CHENNAI: MRF Ltd has reported a net profit of Rs 4.28 crore for the quarter ended March 31, 2001, as against Rs 16.65 crore for the corresponding quarter of last year - a decline of 75 per cent.

For the half-year ended March 31, 2001, the net profit slid to Rs 13.92 crore (Rs 33.27 crore). This represents a decline of 58.16 per cent.

A footnote to the statement of results says that the figures for the second quarter of 2000 and first-half of 2000 have been recast, so as to conform with the revised accounting standard (AS-2) for inventory valuation.

In the case of MRF, the recast figures are lower than those reported earlier. Last year, for the second quarter 2000, the company had reported a net profit of Rs 20.88 crore, as against the revised net profit of Rs 16.65 crore reported now.

For the first half of last year, MRF had said it had made a net profit of Rs 40.93 crore. After giving effect to AS-2, the net profit for the first-half of 2000 has been revised downwards to Rs 33.27 crore.

In other words, but for recasting of the net profit figures, MRF's performance would have been worse in comparison with last year, than what it appears from the figures presented now.

Net sales in the second quarter of 2001 amounted to Rs 524.61 crore (Rs 551.06 crore). `Other income' was also lower at Rs 46 lakh (Rs 1.47 crore).

Consumption of raw material was lower at Rs 253.79 crore (Rs 255.07 crore). But it amounted to 48.37 per cent of sales, as against 46.38 percent previously.

Staff cost was Rs 31.76 crore (Rs 33.49 crore).

Interest charges were slightly lower at Rs 15.02 crore (Rs 16.21 crore). Depreciation amounted to Rs 23.28 crore (Rs 26.42 crore). The company provided Rs 1.92 crore towards taxation, as against Rs 8.85 crore previously.

In the half-year ended March 31, 2001, turnover was Rs 1,095.18 crore (Rs 1,118.96 crore).

Mr Philip Eapen, Executive Director (Marketing), MRF, told Business Line that the company had done well despite the recessionary conditions in the market.

``In a completely recessionary environment, we have been able to hold on to profits,'' he said, pointing out that the company had done better than the competition.

He said that the company would focus on exports, to beat the recession in the domestic industry. Last year, MRF opened an office in Dubai. Mr Eapen said that it would take some time to develop export markets.

In response to a question, he said that rubber prices were quite low now, which has been a big help.