The turnover grew only by 5 per cent to Rs 562.86 crore from Rs 536.74 crore during January-March 1998. Volume growth seems to have helped the company post a higher turnover as the tyre prices remained flat throughout the year.

With commercial vehicle majors Ashok Leyland and Telco going full blast in the three months to March, volumes picked up in these months. The replacement market too showed some signs of revival and a little volume is expected to have come from that segment.

Operating profit during the period was Rs 82.43 crore. This was higher than Rs 76.68 crore posted in the previous corresponding quarter. Prices of rubber and chemicals remained soft, which helped the company post a marginal 1 per cent improvement in its operating margin from14 per cent to 15 per cent.

Interest costs were slightly lower at Rs 15.64 crore (Rs 16.91 crore), resulting in a gross profit of Rs 66.79 crore (Rs 59.77 crore). After providing Rs 24.47 crore (Rs 21.91 crore) towards depreciation and Rs 10.75 crore (Rs 11.50 crore) towards tax liability, the company has posted a net profit of Rs 31.57 crore (Rs 26.36 crore). For the full year ended September 30, 1998, MRF had posted a turnover of Rs 2,203.77 crore and a net profit of Rs 102.28 crore.