The Hindu Business Line : MRF net doubles on cost cutting; to pay Rs 14 final

MRF Ltd has reported a net profit of Rs 78.46 crore for the financial year 2001-02, which ended on September 30, 2002. This is more than double of the Rs 31.74 crore, the company achieved in 2000-01.

The board of directors of the company has recommended a final dividend of Rs 14.0 per share (140 per cent). Earlier, MRF had recommended two interim dividends of Rs 3 per share each (30 per cent each).

However, turnover increased only by 5.3 per cent, to Rs 2,232.83 crore, as against Rs 2,120.41 crore in the previous year.

The company's Executive Director (Marketing), Mr Philip Eapen, told Business Line today that this was possible because of the cost cutting measures the company put through towards the end of 2000-01, which yielded results last year.

"More importantly, because of our brand equity, we held on to the prices," Mr Eapen said. Asked how the company managed the impact of the rising rubber prices, he said that the average price of rubber through last year was not much higher than in the previous year. Prices have shot up sharply, after the company's financial year ended, he noted.

One of the reasons for the better bottomline is the reduction in interest costs - to Rs 41.97 crore from Rs 55.68 crore in the previous year. This, Mr Eapen attributed to better receivables management, and repayment of some high cost debt.

Another notable feature of the results is the sharp rise in staff costs - which have risen to Rs 155.48 crore from Rs 134.03 crore. Exports for the year ended September 2002 amounted to Rs 226.62 crore against Rs 174.14 crore the previous year.

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MRF net doubles on cost cutting; to pay Rs 14 final