MRF Q1 profit falls 95% to Rs 13 crore; revenue dips to Rs 2,460.7 crore

Tyre major MRF Ltd on Friday reported 95.07 per cent decline in consolidated net profit from continuing operations at Rs 13.46 crore for June quarter impacted heavily by the coronavirus pandemic.

In the year-ago period, the company's consolidated net profit from continuing operations was Rs 273.27 crore, MRF said in a regulatory filing.

Revenue from operations in the period under review stood at Rs 2,460.70 crore as against Rs 4,470.82 crore in the corresponding quarter last fiscal, it added.

"Covid-19 pandemic has severely affected the business environment and the economy," MRF said.

The group's plants, offices and godowns were closed when the nationwide lockdown was announced on March 24 in order to reduce the impact of the pandemic, it added.

"However, post lifting of the lockdown in a phased manner the group's operations have resumed, though not at the full level which prevailed prior to the lockdown," it added.

The total income in June quarter dropped by Rs 1,240.58 crore (33 per cent) as compared to the preceding March quarter. When compared to the year-ago period, total income was down by Rs 2,072.03 crore (45 per cent), the company said.

MRF said as on the date of the approval of the financial statements, the group has a strong net worth and has serviced all its debtobligations in a timely manner.

"It does not foresee any incremental risk regarding recoverability of assets and ability to service financialobligations," the company added.