After the company issued a second interim dividend of Rs 3 per equity share, which is trading at close to Rs 89,000, tyre manufacturer MRF became a target for memes on Twitter on Thursday. Twitter users questioned whether the corporation is not "embarrassed" for declaring such a meagre payout. The dividend will be paid on or after March 6, 2023, and the record date for the same is set at February 21, 2023.
On Thursday, the firm also released its financial results for the December quarter. In comparison to Q3 of the previous year, its net profit increased 17% to Rs 175 crore. When compared to Q3FY22, MRF's revenue climbed 15% to Rs 5,645 crore from Rs 4,920 crore.
However, the company's announcement of a Rs 3 interim dividend—a dividend yield of 0.003%—stands out among the results. In the last five years, the business has declared a total dividend of Rs 450.
In Q3FY23, total expenses were Rs 5,484.72 crore, an increase of 14.57% year over year. In Q3FY23, the cost of materials utilised was Rs 3,794.99 crore (up 25.01% YoY), and the cost of employee benefits was Rs 411.32 crore (up 7.98% YoY).
MRF produces rubber goods such as tyres, tubes, flaps, and tread rubber. It may also trade in rubber and rubber-related chemicals.
Arun Mammen will be reappointed by the board of directors as managing director of the firm with the title of "vice chairman & managing director" for a period of five years beginning on April 1, 2023. Shares of MRF dropped 4.08% on Thursday to Rs 88,451.05 on the BSE.
