Tyre major MRF Ltd. has posted a net profit of Rs.490.93 crore for the quarter ended June 30, 2016 against Rs.479.54 crore for the corresponding year-ago period. Total income on a standalone basis increased to Rs.3,481.97 crore, from Rs.3,477.17 crore.
The unaudited numbers, as reviewed by the audit committee, were approved by the board of the company, which met on Thursday.
In a notification to the BSE, the company said the financial results were prepared in accordance with the Indian Accounting Standards (Ind AS). This is in line with a recent circular issued by the Securities and Exchange Board of India (SEBI).
The company informed the exchange that the Ind AS-compliant standalone financial results for the corresponding quarter ended June 2015 had not been subjected to limited review or audit. “However, the management has exercised necessary due diligence to ensure that the financial results provide a true and fair view of its affairs,” the company said.
Addressing the 55th annual general meeting of the shareholders in Chennai on Thursday, MRF Chairman and Managing Director, K.M. Mammen said that the overall profitability for the company over the last few years was on the rise due to the softening of raw material prices. Also, the company was able to sell products at a brand premium, he added.
“With this period now likely drawing to a close, it is imperative that we need to protect our domestic turf and focus our efforts to maintain and grow our leadership position,” he said. Excess capacity in the industry, inflationary input costs and increasing pressure on margins, however, had made the competitive canvas a challenging one, he said.
“We can be sure that our ability to be nimble-footed and respond speedily to changing customer preferences will be relentlessly put to the test in the near future,” he said.
Nevertheless, he asserted that “the MRF management team is geared up and fully ready for this challenge.”
