MRF Limited Q2 FY24: Net profit jumps 351% YoY, Rs 3 dividend declared

Tyremaker MRF Limited's net profit surged 351 per cent year-on-year to Rs 572 crore on the back company's improved operational performance during Q2 FY24. The net profit was Rs 129.86 crore in the same quarter in FY23.

Its revenue grew 6.5 per cent year on year to Rs 6,088 crore as against Rs 5,719 crore in the same quarter of FY23. On a quarter-on-quarter basis, the revenue for operations was down 3.46 per cent as against Rs 6,440.29 crore in April-June FY24.

The tyre maker’s EBITDA for the quarter surged more than two-fold on year to Rs 1,129.09 crore. As a result, the operating margin expanded by a staggering 1,038 basis points to 18.55 per cent.

The debt-to-equity ratio was 0.06 times as of September end, compared to 0.08 times a year ago, and 0.07 times a quarter ago.

The board of directors announced an interim dividend of Rs3 per equity share (30%) for the financial year ending March 31, 2024, a stock filing by the company said.

The company has fixed November 17 as the record date for the interim dividend. It said the dividend will be paid to the shareholders on or after November 30, 2023.

The record date is the cut-off date established by a company to determine the eligibility of shareholders for the payment of dividends.

In July 2023, the tyremaker had announced a final dividend of Rs 169 for financial year 2023. The total payout for FY24 was Rs 175.

For the year ending March 2023 MRF has declared an equity dividend of 1,500% amounting to Rs 150 per share considering the face value of Rs 10.

In June this year, MRF shares crossed the Rs 1 lakh mark in intraday trading on the BSE and NSE, making it the first Indian stock to trade above the six-figure mark.

On June 13, the stock touched a new intraday high of Rs 1,00,300 on the BSE, but ended at Rs 99,950.65. On the NSE, MRF touched an intraday peak of Rs 1,00,439.95.

MRF has been paying dividends but has never issued a bonus share or carried out a stock split.

Shares of MRF Ltd were trading at Rs 1,08,040.00, down by 2.23 per cent.