Margin pressure to continue: MRF

Tyre maker MRF said raw Material prices continue to remain firm due to the ongoing conflict in the Middle East and impact of higher costs on margins is expected to continue.

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In a statement, the company said it has taken price increases and cost management measures in the first quarter which helped to partially offset cost increases.

Demand from Original Equipment Manufacturers was buoyant as Vehicle sales across segments witnessed strong growth. Replacement sales was also healthy as demand continued to be robust, MRF said.

However, higher input costs impacted profitability in the first quarter, the company said.

MRF’s first quarter consolidated net profit declined to Rs 495.35 crore from Rs 501.82 crore in the comparable period last year.

Cost of materials jumped to Rs 5,854.23 crore in the first quarter from Rs 4,622.99 crore in the same period last year.

Revenue from operations increased to Rs 8,415.50 crore in the April-June quarter, from Rs 7,675.64 crore in the same period last year.

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