India's most expensive stock MRF declares Rs 194 dividend (2024)

MRF, known as India's most expensive stock, made headlines on Friday by declaring a final dividend of Rs 194 per share for the financial year ending March 31, 2024.

This announcement marks a shift from its recent trend of offering modest dividends of Rs 3 per share in the previous two financial periods.

"The Board of Directors have recommended a final dividend of Rs 194 - (1940%) per share of Rs 10 each. The company has already declared and paid two interim dividends of Rs 3- (30%) each per share for the financial year ended March 31, 2024. The total dividend for the financial year ended 31 March 2024 works out to Rs 200 per share - (2000%) per share of Rs 10 each," said MRF.

This dividend, combined with two interim dividends of Rs 3 (30%) each already paid during the fiscal year, amounts to a total dividend of Rs 200 (2000%) per share of Rs 10 each for FY24.

Despite the generous dividend payout, MRF's financial performance for the year also showcased positive growth. The company reported a consolidated net profit of Rs 396 crore, reflecting a 16% increase compared to the previous year's figure of Rs 341 crore.

However, on a sequential basis, the consolidated profit after tax (PAT) declined by 22%, standing at Rs 396 crore against Rs 510 crore reported in the October-December quarter.

In terms of revenue from operations, MRF recorded a notable increase for the reported quarter, reaching Rs 6,349 crore compared to Rs 5,842 crore in the same period last year—an uptick of 9% year-on-year.

Concurrently, the company's expenses also rose by 9% year-on-year, amounting to Rs 5,916 crore in the specified quarter versus Rs 5,410 crore in Q4FY23.

The net profit margin for the reported quarter stood at 6.15%, showing a decrease from the previous quarter's figure of 8.17% and an improvement from the same period last year, which stood at 5.76%.

On a standalone basis, MRF reported a profit of Rs 379.55 crore for the January-March quarter, representing an 8% decline from the Rs 410.66 crore reported in Q4FY23. The quarter-on-quarter (QoQ) comparison reveals a more substantial drop of over 25%.

Similarly, standalone revenue for the quarter stood at Rs 6,215 crore, showing an increase of 8.50% compared to the year-ago period's revenue of Rs 5,725 crore. However, this figure represents a decrease from the previous quarter's revenue of Rs 6,048 crore.

Shares of MRF closed at Rs 1,28,400, a decline of 4.08% on Friday.