260% Dividend, 2.08% Yield: 100-Year Old Tyre Firm Turned Ex-Dividend On Feb 12; Stock On Roller Coaster Ride!

With more than 100 years of presence in India, Goodyear is one of the oldest tyre and rubber companies out there. On Monday, Goodyear's share price was in focus as it turned ex-dividend for a dividend payout of a whopping 260%. On the ex-dividend day, the stock was a on whole roller coaster ride, from nosediving by nearly 19% to regaining some buying strength but ending lower by 4%.

Goodyear India Share Price:

This small-cap stock during the trading session of Monday fell by 18.98% to hit an intraday low of Rs 1,100.60 apiece. The stock almost neared its 20% lower circuit of Rs 1,046.85.

Nonetheless, Goodyear's share price ended at Rs 1,308.55 apiece, down by 3.7% on BSE with a market cap of Rs 3,018.37 crore.

Goodyear India Dividend:

The company has declared a special interim dividend of Rs. 26.00/- per equity share of the face value of Rs. 10/- each, for the Financial Year 2023-24.

The special Interim Dividend shall be paid within the statutory time limit and the Record Date for the purpose of determining the entitlement of the Members for the special interim dividend was fixed as February 12, 2024.

That means only those investors will be eligible for the dividend payout who holds shares of Goodyear by the end of February 12.

Currently, Goodyear has a dividend yield of 2.08%.

In FY23, Goodyear declared dividends up to 265% amounting to Rs 26.5 per share.

Goodyear India Earnings:

Q3 Results: The company's third-quarter revenue was Rs 597 crore, lower by 14% from a year ago. Third quarter profit before tax (PBT) was Rs 30 crore compared to Rs 33 crore in the prior year. Year-over-year profit was lower by 9% due to reduced volume partially offset by reduced Raw material prices.

Year to date 2023-24 Results: The company's total income in 9MFY24 was Rs 2,014 crore, lower by 12% from the same period last year primarily driven by lower sales due to subdued demand. Year-to-date profit before tax was Rs 133 crore compared to Rs 120 crore a year ago, increase of 11% is driven primarily due to reduced Raw material prices offsetting the lower volume impact.

Sandeep Mahajan, Chairman & Managing Director of Goodyear India said, "We witnessed a significantly weak quarter in the Farm segment with the tractor industry recording substantial YoY degrowth. Being a leading player in Farm Tyres, our YoY volumes de-grew accordingly, impacting our Revenue and Profitability. We continue to maintain leadership in the Farm segment. The Consumer Replacement industry also witnessed subdued demand, including the festival season, resulting into lower-than-expected volumes. Goodyear is a key player in Farm and Consumer replacement segments."

Mahajan added, "Raw Material prices witnessed an increasing trend on sequential basis, impacting our QoQ profitability. Our continued focus on cost management and improving product mix partially offset the impact of higher Raw Material costs and lower volumes. Management is focused on expanding its market presence across all segments and channels through increased distribution and introducing new products."

About Goodyear India:

Goodyear's presence in India is 100 years old, with two plants, one each in Ballabgarh and Aurangabad. In the farm category, Goodyear India is a leading player in the Original Equipment segment and supplies to all major tractor companies.

Goodyear is one of the world's largest tire companies. It employs about 72,000 people and manufactures its products in 57 facilities in 23 countries around the world. Its two Innovation Centers in Akron, Ohio, and ColmarBerg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry.