High Rubber Prices Crash MRF Profits

Published: Friday, July 29, 2011, 13:57 [IST]

Indian tyre manufacturer MRF which has posted its financial results for the first quarter yesterday has said its profits have crashed by a massive 48 per cent or Rs.30 crore. The company had posted a net profit of Rs.62 crores during the corresponding period last year.

MRF said its total income had increased by 34 per cent to Rs.2,573 crores The company has said increased manufacturing costs were the main reason for the reduced profits. The price of its main raw material rubber has increased exponentially in the past few months.. Although rubber prices seem to have stabilised, MRF has said the increase in price will continue to affect production costs.

MRF has also had labour disturbances with two instances of lock out at its tyre manufacturing plant near Kottayam, Kerala. MRF might also see its sales dip as the Indian car market braces itself for a slowdown following a steep increase in fuel prices and bank interest rates.

Article Published On: Friday, July 29, 2011, 11:41 [IST]

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