InvestorQ : How did MRF managed to report such fantastic profits despite the pressure to perform in difficult markets?
Mahima Roy made post

How did MRF managed to report such fantastic profits despite the pressure to perform in difficult markets?

Answer
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Aditi Sharma answered.
4 months ago


MRF reported doubling of net profits to Rs.679 crore for the fourth quarter ended March 2020. This is a sharp increase in the net profit from a level of Rs.294 crore reported in the same quarter last year. Total revenues from operations stood at Rs.3685 crore as compared with Rs4138 crore in the same period of 2018-19, MRF Ltd said in a regulatory filing.

For fiscal year 2019-20, MRF posted net profits of Rs.1423 crore as against a profit level of Rs.1131 crore in 2018-19. The tyre industry has been facing market demand problems due to the crisis that the automobile sector has been confronting for some time now.

For MRF, the COVID-19 pandemic has brought in bouts of uncertainty for the automobile sector and for the tyre industry. However, companies like MRF will benefit from the decision by the government to put restrictions on the import of tyres. This is likely to be a big boost for the Indian tyre industry in general and MRF in particular.