MRF's record dividend announcement and financial performance

MRF, renowned as India's priciest stock, has stunned investors with a final dividend announcement of Rs 194 per share for the fiscal year ending March 31, 2024. This marks a departure from its past trend of offering Rs 3 per share in dividends over the last two financial periods.

Generous dividend amid positive financial growth

Despite the significant dividend payout, MRF's financial report for the year exhibits promising growth. The company reported a consolidated net profit of Rs 396 crore, marking a 16% increase from the previous year. However, the consolidated profit after tax (PAT) saw a sequential decline of 22% from the October-December quarter, standing at Rs 396 crore.

Revenue from operations witnessed a substantial 9% year-on-year increase, reaching Rs 6,349 crore compared to the same period last year. Concurrently, expenses also surged by 9%, totaling Rs 5,916 crore for the specified quarter. Despite the rise in expenses, the net profit margin for the quarter stood at 6.15%, showing a slight decrease from the previous quarter but an improvement from the same period last year.

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Standalone performance and market reaction

On a standalone basis, MRF reported a profit of Rs 379.55 crore for the January-March quarter, marking an 8% decline from the previous year. Standalone revenue for the quarter witnessed an 8.50% increase compared to the year-ago period. However, shares of MRF closed at Rs 1,28,400, experiencing a decline of 4.08% on Friday.

In summary, MRF's record dividend declaration coupled with its positive financial performance reflects its strong position in the market, offering investors a blend of growth potential and income generation.

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