30% Dividend Payout: Tyre Stock MRF To Pay Rs 3/Share Dividend After 303% Rise In Q2 Consolidated Net Profits

India's largest tyre manufacturer, MRF formerly known as Madras Rubber Factory, is among the dividend king stocks and on Friday it declared yet another reward for shareholders. After registering over a 4-folds rise in consolidated net profit during Q2FY24, MRF announced an interim dividend of Rs 3 per share for financial year 2023-24. In percentage terms, the dividend payout will be 30%.

As per regulatory filing, MRF said, the board of directors have declared an Interim Dividend of Rs 3/-per equity share [30%] for the financial year ending 31st March 2024. The company fixed November 17th as the record date for determining eligible shareholders for the benefits.

The company said the interim dividend declared will be paid on or after 30th November 2023.

In FY23, MRF paid a total dividend of 1750% amounting to Rs 175 per share.

Coming to the Q2 results, MRF reported a consolidated net profit of Rs 585.43 crore, attributable to the owners, rising by 302.74% or 4.03 times from PAT of Rs 145.36 crore in Q2 of FY23. However, sequentially, the Q2 PAT had declined as against a profit of Rs 609.66 crore in the June 2023 quarter.

Consolidated revenue from operations stood at Rs 6,217.10 crore, also up from Rs 5,826.30 crore in Q2FY23 but down from Rs 6,440.29 crore in Q1FY24.

On a standalone basis, MRF reported a net profit of Rs 571.93 crore, as against Rs 123.99 crore in Q2FY23 and Rs 581.45 crore in Q1FY24. Also, revenue stood at Rs 6,087.56 crore in Q2FY24, climbing from Rs 5,719 crore in Q2FY23 but lower from Rs 6,323.28 crore.

Here are key important dates to remember to be eligible for MRF dividends:

1. Record Date: All eligible shareholders with their names in the list at the end of the Record Date will be eligible to receive dividends. In the case of MRF, the record date is November 17th.

2. Ex-Dividend Date: On this day the price of the equity share of the Company gets adjusted for the dividend payout. Since the adoption of settlement type 'T+1', shares are adjusted in demat accounts in 1 day, and hence ex-dividend dates are the same as the record date. For MRF, that would mean that the shares will turn ex-dividend on November 17 as well.

3. Payment Date/ Issue Date: Payment of dividend is to be completed within 30 days of its approval. The eligible shareholders who were identified during the record date will receive the dividends on or before or after the specified payment date. In the case of MRF, the company specified on or after November 30, 2023, as the payment date.

MRF Tyres is an Indian multinational and India's largest tyre maker, headquartered in Chennai, India. The company was founded in 1949 by K M Mammen Mappillai. The company's product ranges from rubber products including tyres, treads, tubes and conveyor belts, paints and toys.

Since August 2000, this tyre giant has declared a massive 71 dividends, as per Trendlyne data.

Dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year.