Chennai: Despite a slowdown in the automobile industry, tyre manufacturer MRF Ltd on Monday reported a net profit of Rs 1,395 crore in FY20 as against Rs 1,097 crore for the previous financial year.
The total income was Rs 16,322 crore in the year ended March as compared to Rs 16,254 crores in FY19. The profit before tax stood at Rs 1,399 crore as against Rs 1,609 crore in the same period.
The net provision for tax (current tax and deferred tax) for the year was Rs 4 crore (previous year Rs 512 crores) because the company decided to exercise the option permitted under Section 115BAA of the Income Tax Act 1961 as introduced by the Taxation Laws Amendment Ordinance 2019.
Accordingly, MRF recognised a provision for income tax for the year ended March 31 and re-measured the deferred tax liabilities and assets on the rates prescribed in the section.
The company' s export was Rs 1,651 crore in FY20 as against Rs 1,566 crore for FY19.
The board of directors has recommended a final dividend of Rs 94 per share (940 per cent) for FY20. With two interim dividends of Rs 3 each paid during the year, the aggregate dividend is Rs 100 per equity share of Rs 10 each (1,000 per cent).
MRF said the tyre industry has been facing market demand problems due to a slowdown in the automobile sector. The way forward is not clear as the COVID-19 pandemic has brought in uncertainties both for the automobile sector and for the tyre industry.
"However, the government' s announcement of putting restrictions on the import of tyres is likely to be of immense help to the tyre industry at a difficult time like this," it said in a statement.