MRF shares that were already trailing in the red on Friday dropped further after the company posted its earnings for the quarter ended March.
What Happened: The tyre giant’s standalone net profit for the March quarter came in at ₹379.55 crore, down 7.6% from the ₹410 crore posted in the same quarter last year. Revenue from operations for the quarter was at ₹6,215 crore, up 8.6% from the ₹5,725 crore reported in the corresponding quarter last year.
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The company also announced a ₹194/share final dividend for the year ending March 2024. Shares of the company sunk around 4.5% as soon as the results came out. It is the highest dividend payout announced by the company. This final dividend, combined with two interim dividends of ₹3 each declared earlier in the financial year 2024, totals ₹200 per share for the year.
The company’s competitor Ceat also reported its earnings on Thursday. The tyre manufacturer witnessed a 23% decrease in its consolidated net profit for the fourth quarter ending March 2024, amounting to ₹102 crore compared to ₹132 crore in the same period last year. The company observed a growth in revenue from operations, which rose to ₹2,992 crore from ₹2,875 crore in the fourth quarter of FY23.
Price Action: MRF’s share price was down 4.39% to trade at ₹1,27,980 in the afternoon hours of trading on Friday.
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