Sharing in Automobile Boom

Sharing in Automobile Boom Hansavivek MRFhas been able to register higher sales and profits during the year ended September 1985 in spite of intense competition in the market. The directors attribute this outcome to improved brand preference of the company's products. Sales amounted to Rs 162.82 crore against Rs 146.11 crore in the previous year and gross profit expanded from Rs 4.30 crore to Rs 6.97 crore, reflecting appreciable increase in profit margins. Although both depreciation and tax liability claimed more, net profit advanced from Rs 1.49 crore to Rs 2.49 crore. To commemorate the silver jubilee year, dividend has been stepped up from 15 per cent to 25 per cent which is covered 2.53 times by earnings as against 2.57 times previously. Exports were also higher at Rs 10.06 crore against Rs 8.33 crore. The company's exports cover worldwide markets including developed countries like US, Canada, USSR, UK, etc. The company has been awarded 'Capexil' special award for export excellence. The current year holds out promise of fur ther improvement in the company's performance. Production for the first four months has been Rs 91 crore as against Rs 65 crore for the corresponding period of the past year and sales have been Rs 80 crore against Rs 60 crore. The directors feel confident that profits during the current year will be "as encouraging as that of last year!' The Central government has revalidated collaboration agreement with B F Goodrich Company, USA, for a further period of five years. For the third year in succession, the company has been awarded The B F Goodrich International Quality Improvement Award' for outstanding achievements in quality management in competition with 20 other tyre plants worldwide. K M Mammen, a director since 1981, has been appointed as a wholetime director of the company with effect from June 1, 1985.