Bengaluru:
Indian tire maker MRF Ltd missed second-quarter earnings estimates on Tuesday as rising input costs and supply chain problems weighed on, offsetting a rise in revenue.
Stand-alone net profit from continuing operations declined 32.2% to 1.24 billion rupees ($15.14 million) for the three months ended Sept. 30 from 1.83 billion rupees a year earlier, it said in a statement. scholarship application.
Analysts had expected an average profit of 1.85 billion rupees, according to data from Refinitiv IBES.
The tire industry struggles with high input costs as rising global inflation pushed the prices of commodities such as rubber up.
MRF chairman KM Mammen had said in July that the raw material supply problems caused by the Russian invasion of Ukraine and low demand due to rising fuel costs were a bummer for the company and the industry in general.
The conflict between Russia and Ukraine also led to a sharp rise in petrochemical costs, an important part of tire production.
MRF’s input costs increased by 8.1% to rupees 41.13 billion.
Indian tire companies, including MRF, said Friday they were investing rupees 11 billion to expand rubber plantations in India’s northeastern and eastern regions.
Operating income increased by 18.4% to 57.19 billion rupees.
In the past week, MRF’s competitors CEAT Ltd and JK Tire and Industries Ltd also reported large declines in their quarterly earnings.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
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