MRF has declared its June quarter net profit and it has informed that the increment in the raw material and employee costs has pulled the net profit figure down. The company has said in a filing that the net profit of the firm has gone down by almost 51% during the April June quarter of the fiscal year.

The company has posted a net profit of Rs 61.6 crore in the quarter ended on June 30, 2010. For the corresponding quarter in the preceding year, the net profit was reported to be Rs 125.7 crore.

According to the company officials, there has been a huge hike in cost of natural rubber and employee which was the major reason of such decline in the net figure.

Moreover, the interest charges have pulled the margin down. But the board of directors has decided to recommend a payment of interim dividend of Rs 3 per equity share subject to the approval of the share holders.

However, there has been a 34.2% growth in the net sales of the firm and it has touched Rs 1,924.4 crore against Rs 1,433.6 crore in its like period a year ago.