Tyre major MRF has reported a 28 per cent drop om profit before tax (PBT) of Rs 291.81 crore during the quarter ended March 31, 2020, from Rs 408.83 crore, a year ago. Total income fell to Rs 3,682.66 crore from Rs 4,182.92 crore.
The company said the Covid-19 pandemic had severely affected the business environment and economy. Due to the lockdown, March 2020 quarter saw a drop in total income of Rs 399.57 crore from the December 2019 quarter and a drop of Rs 500.26 crore year-on-year. Most of the company’s operations have resumed after lifting of the lockdown.
The tyre industry has been facing demand problems emanating from the crisis that the automobile sector has been facing for some time. The way forward isn't clear as the pandemic has brought in uncertainties both for the auto 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, said the company.