Last updated: 14 Aug, 2020 | 03:10 pm
Profit nearly washed out: Tyre major MRF has reported a 95% 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.
Revenues plunge: MRF’s revenue from operations declined 45% on-year to Rs 2,460.70 crore, as the group's plants, offices and godowns were closed following the announcement of the nationwide lockdown announced on March 24. “Post lifting of lock-down in a phased manner, MRF’s operations have resumed, though not to the pre-lockdown level.”
Final Dividend payment date: In the previous quarter, MRF had informed that its board has recommended a final dividend of ₹94 per share for FY20. The company’s 59th AGM is scheduled to be held on Thursday; 24th September 2020. The date of payment of Final Dividend is on or after 16th October, 2020 ‘subject to the approval of the shareholders in the AGM.
Auto ancillaries including tyre manufacturers have been hurt due to the pandemic. Given its market leader status, the company is well poised to brave the ongoing crisis. The company has a strong Net Worth and has serviced all its debt obligations in a timely manner. It does not foresee any incremental risk regarding the recoverability of assets and the ability to service financial obligations.
Consensus recommendation: Hold (based on views of 8 analysts from external research institutions)