Leading tyre maker MRF plans to raise ₹150 crore via NCDs (non-convertible debentures) through private placement.

The Board of MRF has approved enhancement in the issue of NCDs through private placement from ₹100 crore, which was approved earlier at its meeting held on August 9, 2022, to ₹150 crore. The Finance Committee of the company will determine the detailed terms and conditions, according to a statement.

Independent Directors’ appointment

The Board also recommended the proposals for the appointment of Vikram Taranath Hosangady, Ramesh Rangarajan, and Dinshaw Keku Parakh as Independent Directors of the Company.

The appointment will take effect upon receipt of all the statutory clearances under applicable law (including approval of shareholders) and shall be valid for five years from that date, it said.

Q2 numbers

Meanwhile, the company has reported a 32 per cent drop in its standalone net profit at ₹124 crore for the quarter ended September 30, 2022 when compared with ₹183 crore in the year-ago quarter.

Its profit before exceptional items and tax was lower at ₹165 crore as against ₹249 crore in September 2021 quarter.    

However, revenue from operations grew 18 per cent to ₹5,719 crore during Q2 of this fiscal when compared with ₹4,832 crore in the year-ago period, aided by a recovery in automotive demand and price increases.  

While the cost of raw materials increased to ₹4,113 crore as against ₹3,805 crore, the company’s total expenses were higher at ₹5,630 crore when compared with ₹4,672 crore in the year-ago quarter. 

On a consolidated basis, the company’s net profit stood at ₹130 crore against ₹189 crore in September 2021 quarter, while revenue from operations stood at ₹5,826 crore as against ₹49,08 crore. 

The board recommended an interim dividend of ₹3 per equity share (30 per cent) for FY23.

Related Topics