M.R.F. Ltd. — Interim / Quarterly Report 2020

Feb 10, 2020

MRF Limited, Regd. Office : 114, Greams Road, Chennai 600 006 E-maii : mrfshare@mrfmail.com; Tel.: 044-28292777; Fax : 9144-2829508? CIN : L25111TN1960PL0004306; Website: www.mrftyres.com

MRFRegd.OfficeLimited,	GreamsRoad,Chennai600006: 114,9144-2829508?
: mrfshare@mrfmail.com;E-maiiL25111TN1960PL0004306;CIN:	FaxTel.: 044-28292777;:www.mrftyres.comWebsite:
071lSH/SE/BOARD/January/ZOZO/KGGFebruary,20201oth,
ExchangeStockLtdNationalofIndiaExchangePlaza5th Floor	BombayExchangeStockLtdTowers24PFloorJ
/Complex1GNo.C/BlockBandra-KurlaPlot	StreetDalal
Mumbai400Bandra051(E)	Mumbai400001
Dear51' r,

Unaudited Financial Results & Limited Review Report for the quarter and Nine Months ended 31St December,2019 /

Please refer our letter dated 24"1 January,2020. /

Enclosed please find copy of the Unaudited Financial Results (Standalone and Consolidated) for the Quarter and Nine Months ended 315t December, 2019 along with Limited Review Report by the Auditors of the Company. The above financial results were approved-by the Board of Directors at its meeting held today, the 10th February,2020. /

In the said Meeting, the Board of Directors has declared a Second Interim Dividend of Rs.3I-per equity share [30%] for the financial year ending 315t March,2020. The Company has fixed 21St February,2020 [21.02.2020] as the record date for the purpose of payment of Second Interim Dividend. The Second lnten'm Dividend declared will be paid on or after 3"6 March,2020 [03.03.20201 / 1

Theimeeting of the Board of Directors of the Company commenced at 11.00 am and concluded . at. :._/.Q. 'p.m.

Thanking you.

Yours faithfutly For MRE LIMITED

A' WW, S DHANVANTH KU _ MPANY SECRETARY

SCA AND ASSOCIATES MAHESH, VIRENDER 8: SRIRAM

"LIMITED REVIEW" REPORT ON THE STANDALONE FINANCIAL RESULTS OF MRF LTD FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER, 2019

Independent Auditor's Review Report To The Board of Directors, MRF Ltd., 114, Greams Road Chennai - 600 006.

• 1. We have reviewed the accompanying statement of Unaudited Standalone Financial Results of MRF Limited ("the Company") for the quarter and nine months ended 315t December, 2019 ("the Statement") attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").
• 1. This Statement is the responsibility of the Company's Management and is approved by the Board of Directors. The statement, as it relates to the quarter and nine months ended 31st December, 2019, has been compiled from the related standalone financial statements prepared in accordance with Indian Accounting Standard 34 "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 read with relevant Rules issued there under and other accounting principles generally accepted in India and in compliance with the Regulation 33 of the Listing Regulations. Our responsibility is to issue a report on the statement based on our review.
• 1. We conducted our review of the statement in accordance With the Standard on Review Engagement (SRE) 2410 "Review ofInterim Financial Infirmation Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered ACCOuntants of India. A review of interim financial information consists of making enquires, primarily of persons re5ponsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the accompanying statement, prepared in accordance with applicable Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder and other accounting practices and principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Chartered Accountants Chartered Accountants FRN 101174W FRN 0019395

, .T' ./J age) > 13/

Partner " _ Partner $3 41,-. M.No.104180 " ' ' M.No.18628 . E? CHARTERED 13.\ . l ' UDIN:20104180AAAABX3265 h ." UDIN:20013628AAAAD2631 Chennai, 10th February, 2020 f,

For SCA AND ASSOCIATES For MAHESH, VIRENDER 8: SRIRAM

(SHIVRATAN AGARWAL) . ' (BR. MAHESH) @3105"

MRF LIMITED
Regd.Office: 114, Greams Road, Chennai - 600 006CIN: L25111TN1960PLC004306; Website: www.mrftyres.com; Email: mrfshare@mrfmail.com; Ph: 044-28292777 FAX: 28295087
							Rs.Crores
	Statement of Standalone Unaudited Financial Results for the Quarter and Nine months ended 31st December, 2019Year endedNine months ended
	PARTICULARS	31.12.2019	Quarter ended30.09.2019	31.12.2018	31.12.2019	31.12.2018	31.03.2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	Revenue from Operations	4,008.89	3,947.57	4,033.76	12,365.96	11,763.55	15,837.00
	Other Income	73.34	94.80	125.75	273.02	308.00	417.47
Ш	Total Income(1+II)	4,082.23	4,042.37	4,159.51	12,638.98	12,071.55	16,254.47
IV.	Expenses
	a) Cost of materials consumed	2,312.82	2,407.83	2,712.49	7,323.84	7,632.19	10,220.40
	b) Purchase of stock-in-trade	4.25	5.59	5.99	15.63	27.06	29.86
	c) Changes in inventories of finished goods, Stock-in-trade and work-in-progress	76.19	(66.44)	(244.84)	97.02	(499.27)	(608.60)
	d) Employee benefits expense	337.95	329.99	297.92	976.42	857.91	1,144.28
	e) Finance costs	70.44	66.49	63.14	205.11	190.48	247.79
	f) Depreciation and amortisation expense	248.97	237.20	205.20	714.17	591.71	806.27
	g) Other expenses	667.48	729.85	710.35	2,199.28	2,071.41	2,805.58
	Total expenses(IV)	3,718.10	3,710.51	3,750.25	11,531.47	10,871.49	14,645.58
٧	Profit before Exceptional Items and Tax ( III-IV)	364.13	331.86	409.26	1,107.51	1,200.06	1,608.89
M	Exceptional Items
VII	Profit before Tax	364.13	331.86	409.26	1,107.51	1,200.06	1,608.89
VIII	Tax expense:
	(1) Current Tax	101.00	96.00	68.00	328.00	274.00	330.00
	(2) Deferred Tax	26.50	15.50	62.00	54.00	123.02	182.02
IX	Profit for the period from Continuing Operations (VII - VIII)	236.63	220.36	279.26	725.51	803.04	1,096.87
x	Other Comprehensive Income( OCI)
	A(i) Items that will not be reclassified to profit or loss	(8.22)	(8.21)	(1.00)	(23.90)	(3.00)	(9.74)
	(ii) Income tax relating to items that will not be reclassified to profit or loss	2.87	2.87	0.35	8.35	1.05	3.40
	B(i) Items that will be reclassified to profit or loss	(0.87)	6.61	(29.88)	4.64	(5.62)	(16.56)
	(ii) Income tax relating to items that will be reclassified to profit or loss	0.31	(2.31)	10.44	(1.62)	1.97	5.79
XI	Total Comprehensive Income for the Period/Year	230.72	219.32	259.17	712.98	797.44	1,079.76
	XII Paid up Equity Share Capital ( Face Value of Rs.10/- each)	4.24	4.24	4.24	4.24	4.24	4.24
XIII	Other Equity excluding Revaluation Reserve						10,649.06
	XIV Earnings Per Share for Continuing Operations (of Rs.10/- each) (not annualised):
	Basic (Rs. Per Share)	557.94	519.58	658.46	1,710.65	1,893.45	2,586.26
	Diluted (Rs. Per Share)	557.94	519.58	658.46	1,710.65	1,893.45	2,586.26
	See accompanying Notes to the financial results

Notes:

(1)The above unaudited standalone financial results (or the Quarter and Nine months ended 31 st December,201 9 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 10th February, 2020. The same have also been subjected to Limited Review by the Statutory Auditors.

(2)These financial results have been prepared in accordance with the recognition and measurement principles laid down in the lnd AS 34—Enterirn Financial Reporting prescribed under Section 133 of the Companies Act, 2013 read with the rules thereunder and in terms of SEBI Circular dated 5th July,2016.

(3)The Company has partly commissioned Phase 1 of its greenfield unit at Dahej Industrial Area.Vagra Taluka,Bharuch district in Gujarat.

(4)The Company is dealing mainly in rubber products and has no other reportable segment.

{5)The Board of Directors has approved the payment of second interim dividend of Rs.3[-per share payable to Shareholders as on the record date 21.02.2020.

(6)The Company has adopted ind AS 116 effective from 1st April, 2019 using modified retrospective method , and recognising the cumulative impact on the date of initial application i.e. 1st April, 2019. Accordingly, the comparative figures relating to the previous periods 1' year have not been restated.The net impact of adoption of this standard on the Profit After Tax for the Current Quarter and Nine months ended 31st December, 2019 is not material.

(?lThe Listed Secured Redeemable Non Convertible Debentures of the Company aggregating to R9340 Crore as on 31st December,2019 are secured by way of legal mortgage of Company's Land at Taluka Kadi,District Mehsana,Gujarat, India and hypothecation by way of first charge on Plant 3. Machinery at the Company's Plants at Perambalur, Trichy, Tamilnadu, equivalent to the outstanding amount.

(B) Pursuant to the Taxation Laws (Amendment) Ordinance, 2019 issued on 20th September, 2019, Corporate Assessees have been given the option to apply lower income tax rate with effect from 1st April, 2019. subject to certain conditions specified therein. The company is in the process of evaluating the impact of availment of the said option and accordingly, no effect in this regard has presently been considered in the measurement of tax expense for the quarter and the period ended 31st December. 2019 and the consequent impact on the deferred tax as of that date.

(9)The figures for the previous periods have been regrouped wherever necessary.

For MRF LIMITED

W '

Place: Chennai RAHUL MAMMEN MAPPILLAI

Date: 10th February, 2020 Managing Director

SCA AND ASSOCIATES MAHESH, VIRENDER 8:. SRIRAM 501 D, POONAM CHAMBERS, A WING BADHE HOUSE 6—3—788/36&37A Dr. ANNIE BESANT ROAD, WORLI DURCANAGAR COLONY MUMBAI—400 018. AMEERI'ET, HYDERABAD - 500 016

"LIMITED REVIEW" REPORT ON THE CONSOLIDATED FINANCIAL RESULTS OF MRF LTD FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER, 2019

Independent Auditor's Review Report To The Board of Directors, MRF Ltd, 114, Creams Road Chennai -— 600 006.

• 1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of MRF Limited (hereinafter referred to as " the Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group"), for the quarter and nine months ended 31st December, 2019 ("the Statement"), being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended ("Listing Regulations").
• This Statement is the responsibility of the Holding Company's Management and is approved by the Holding Company's Board of Directors. The statement, as it relates to the quarter and nine months ended 31st December, 2019, has been compiled from the related Consolidated Financial Statements prepared in accordance with Indian Accounting Standard 34 "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 read with relevant Rules issued there under and other accounting principles generally accepted in India and in compliance with the Regulation 33 of the Listing Regulations. Our responsibility is to issue a report on the statement based on our review.
• We conducted our review of the statement in accordance with the Standard on Review Engagement (SRE) 2410 "Review ofInterim Financial Informtion Perfimiwd by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making enquires, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. We also performed procedures in accordance With the Circular issued by the Securities and Exchange Board of India under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, to the extent applicable.
• Attention is drawn to Note 2 to the fact that the consolidated figures for the corresponding Quarter and nine months ended 31st December, 2018, as reported in these unaudited consolidated financial results have been approved by the Parent's Board of Directors, but have not been subjected to review since the requirement of submission of quarterly consolidated financial results has become mandatory effective 01st April 2019.
• The statements includes the results of the following entities :

Name of the Entity Relationship MRF Corp Limited Wholly Owned Subsidiary MRF Lanka (Private) Limited ' 'Wholly Owned Subsidiary MRF SG Pte Ltd. Wholly Owned Subsidiary . Q?) \ MRF International Limited Subsidiary O

t:

• 1. The statement includes the interim financial results and other financial information of four subsidiaries whose interim financial results/ information reflects Group's share of total revenues of Rs. 67.53 Crores and Rs.190.55 Crores, Group's share of net profit after tax of R5469 Crores and Rs.18.04 Crores and Group's share of total comprehensive income of Rs. 14.26 Crores and Rs.10.24 Crores for the Quarter ended 31St December,2019 and for the period 01st April, 2019 to 315l December,2019 respectively, which have not been reviewed. These interim financial results and other financial information have been certified by the management. According to the information and explanations given to us by the Management, these interim financial results and financial information are not material to the group. Our conclusion on the statement is not modified in respect of the above matter.
• 1. Based on our review conducted as stated in paragraph 3 above , nothing has come to our attention that causes us to believe that the accompanying statement, prepared in accordance with applicable Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder and other accounting practices and principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Chartered Accountants Chartered Accountants FRN 101174W FRN 0019395

/l j

(SHIVRATAN AGARWAL) (BR. MAHESH) Partner Partner M. No. 104180 {25' M. No. 18628 Chennai, 10th February, 2020

For SCA AND ASSOCIATES For MAHESH, VIRENDER 8: SRIRAM

UDIN : 20104180AAAABY3455 \ UDIN: 20018628AAAAAE5439

	MRF LIMITED
Regd.Office: 114, Greams Road, Chennai - 600 006CIN: L25111TN1960PLC004306; Website: www.mrftyres.com; Email: mrfshare@mrfmail.com; Ph: 044-28292777 FAX: 28295087
Rs.Crores
	Statement of Consolidated Unaudited Financial Results for the Quarter and Nine months ended 31st December, 2019Nine months ended
	PARTICULARS	31.12.2019	Quarter ended30.09.2019	31.12.2018	31.12.2019	31.12.2018	Year ended31.03.2019
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	Revenue from Operations	4,075.75	4,007.63	4,095.03	12,554.20	11,924.79	16,062.46
u	Other Income	74.01	95.48	126.42	275.33	309.94	421.73
Ш.	Total Income(I+II)	4,149.76	4,103.11	4,221.45	12,829.53	12,234.73	16,484.19
IV	Expenses
	a) Cost of materials consumed	2,340.39	2,425.75	2,710.16	7,399.35	7,669.72	10,292.57
	b) Purchase of stock-in-trade	4.34	5.68	6.18	15.92	27.80	30.60
	c) Changes in inventories of finished goods, Stock-in-trade and work-in-progress	76.52	(66.14)	(238.87)	93.67	(489.80)	(613.83)
	d) Employee benefits expense	344.86	336.20	303.13	995.69	874.17	1,165.28
	e) Finance costs	76.58	71.75	70.68	220.34	205.60	267.31
	f) Depreciation and amortisation expense	249.33	237.63	205.53	715.32	592.70	807.60
	g) Other expenses	687.43	749.93	743.80	2,258.81	2,120.86	2,882.48
	Total expenses(IV)	3,779.45	3,760.80	3,800.61	11,699.10	11,001.05	14,832.01
v	Profit before Exceptional Items and Tax ( III-IV)	370.31	342.31	420.84	1,130.43	1,233.68	1,652.18
VI	Exceptional Items
VII	Profit before Tax	370.31	342.31	420.84	1,130.43	1,233.68	1,652.18
	VIII Tax expense:
	(1) Current Tax	102.49	97.88	68.01	332.91	273.98	339.17
	(2) Deferred Tax	26.50	15.47	62.00	53.97	123.02	182.40
IX	Profit for the period from Continuing Operations (VII - VIII)	241.32	228.96	290.83	743.55	836.68	1,130.61
X	Other Comprehensive Income(OCI)
	A(i) Items that will not be reclassified to profit or loss	(8.22)	(8.21)	(1.00)	(23.90)	(3.00)	(9.63)
	(ii) Incometax relating to items that will not be reclassified to profit or loss	2.87	2.87	0.35	8.35	1.05	3.37
	B(i) Items that will be reclassified to profit or loss	8.70	(10.76)	14.30	(3.16)	10.67	(0.30)
	(ii) Incometax relating to items that will be reclassified to profit or loss	0.31	(2.31)	10.41	(1.62)	1.94	5.79
XI	Total Comprehensive Income for the year attributable to:
	Owners of the Company	244.98	210.55	314.89	723.22	847.34	1,129.84
	Non Controlling Interest						0.01
XII	Paid up Equity Share Capital (Face Value of Rs.10/- each)	4.24	4.24	4.24	4.24	4.24	4.24
XIII	Other Equity excluding Revaluation Reserve						10,833.11
	XIV Earnings Per Share for Continuing Operations (of Rs.10/- each) (not annualised):
	Basic (Rs. Per Share)	569.00	539.85	685.73	1,753.18	1,972.77	2,665.82
	Diluted (Rs. Per Share)	569.00	539.85	685.73	1,753.18	1,972.77	2,665.82
	See accompanying Notes to the financial results

Notes:

(1)The above unaudited consolidated financial results for the Quarter and Nine months ended 31st December,2019 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 10th February. 2020. The same have also been subjected to Limited Review by the Statutory Auditors.

(2)The Consoiidated Financial results include the results of the hoiding company and four subsidiaries.The holding company with its Subsidiaries is here in referred to as the GroupJn the previous year,the Group has opted to publish Consolidated Financial results on an annual basis.Acoordingly, the Consoiidated Financial results for the Quarter and Nine months ended 31st December,2018 are approved by the Board of Directors of the Company but have not been subjected to review by the Statutory Auditors.

(3)The Holding Company has partly commissioned Phase 1 of its greenfield unit at Dahej Industrial Area,Vagra Taiuka,Bharuoh district in Gujarat.

(4)These financiai results have been prepared in accordance with the recognition and measurement principles laid down in the ind AS 34-Interim Financial Repoting prescribed under Section 133 of the Companies Act, 2013 read with the rules thereunder and in terms of SEBI Circular dated 5th July,2016.

(5) The group except for MRF Corp Ltd, is engaged in the manufacture of rubber products such as Tyre, Tubes, Flaps, Tread Rubber and I or Trading in Rubber and Rubber Chemicals. In the context of IND-AS 108 operating segment are considered to constitute one single primary segment. MRF Corp Ltd is engaged in the manufacture of Speciality Coatings and its revenues, results and assets do not meet the criteria specified for reportable segment prescribed in the lND-AS. The group's operations outside India do not exceed the quantitative threshold for disclosure envisaged in the lND-AS. Non—reportable segments have not been disclosed as unallocated reconciling item in view of their materiality. In view of the above, primary and secondary reporting disclosures for businesslgeographicall segment are not applicabie.

(6)The Group has adopted Ind AS 116 effective from 1st April. 2019 using modified retrospective method . and recognising the cumulative impact on the date of initial application Le. 15: April, 2019. Accordingly, the comparative figures relating to the previous periods I year have not been restated.The net impact of adoption of this standard on the Profit After Tax for the current quarter and nine months ended 31st December, 2019 is not material.

(7)The Listed Secured Redeemable Non Convertible Debentures of the Holding Company aggregating to RS340 Crore as on 31st December,2019 are secured by way of legal mortgage of Holding Company's Land at Taluka Kadi,Distn'ct Mehsana,Gujarat, india and hypothecation by way of first charge on Plant 8: Machinery at the Holding Company's Plants at Perambalur, Trichy, Tamilnadu, equivalent to the outstanding amount.

(8) Pursuant to the Taxation Laws (Amendment) Ordinance, 2019 issued on 20th September, 2019, Corporate Assessees have been given the option to apply lower income tax rate with effect from 1st April, 2019, subject to certain conditions specified therein. The group is in the process of evaluating the impact of availment of the said option and accordingly, no effect in this regard has presently been considered in the measurement of tax expense for the quarter and the period ended 31st December, 2019 and the consequent impact on the deferred tax as of that date.

(9)The figures for the previous periods have been regrouped wherever necessary.

For MRF LIMITED

Place: Chennai RAHUL MAMl'lllEN MAPPILLAI

Date: 10th February, 2020 Managing Director