MRF announces Rs 3 dividend for every share worth Rs 89,000; memes erupt on Twitter

Tyre maker MRF became meme-worthy on Twitter on Thursday after the company announced a second interim dividend of Rs 3 per equity share, which is priced at nearly Rs 89,000. Twitter users wondered if the company isn't 'embarrassed' for announcing a pittance as dividend. The record date for the same is fixed on February 21 2023 and the dividend will be paid on or after March 6, 2023.

The company also announced its December quarter earnings on Thursday. Its net profit rose 17% to Rs 175 crore in Q3FY23 as against Rs 149 crore in the year-ago period. MRF's revenue increased 15% to Rs 5,645 crore as compared to Rs 4,920 crore in Q3FY22. 

However, what stood out from the earnings is the company announcing Rs 3 interim dividend, which is a dividend yield of 0.003%. The company announced a combined Rs 450 dividend in the last five years. 

Total expenses grew 14.57% year on an annual basis to Rs 5,484.72 crore in Q3FY23. Cost of materials consumed stood at Rs 3,794.99 crore (up 25.01% YoY) and employee benefits expense was at Rs 411.32 crore (up 7.98% YoY) in Q3FY23.

Here are a few unmissable Twitter reactions to the tyre maker's corporate action: 

MRF is engaged in the manufacture of rubber products such as tyre, tubes, flaps, tread rubber and/or trading in rubber and rubber chemicals.

The board of directors has also approved the re-appointment of Arun Mammen as managing director of the company with the designation 'vice chairman & managing director' for a period of 5 years with effect from April 1, 2023.

On Thursday, shares of MRF slipped 4.08% to Rs 88,451.05 on the BSE.