On May 7, MRF, one of the leading stock performers in India, made headlines by announcing an extraordinary 2290% dividend payout for its shareholders as part of its fourth-quarter results for the financial year ending March 2025. The company’s board approved a final dividend of ₹229 per share, marking a significant return on investment for those holding shares in this prominent tyre manufacturer.
MRF’s Generous Dividend Announcement
The company shared in its official filing, "The Board of Directors has recommended a final dividend of ₹229/- (2290%) per share of ₹10 each." This announcement follows two interim dividends of ₹3 each, totaling a remarkable ₹235 (or 2350%) dividend for the financial year. While MRF did not specify a record date for this payout, the announcement has undoubtedly caught the attention of investors.
MRF’s Dividend History and Yield
According to recent data from Trendlyne, MRF has distributed an equity dividend of ₹200 per share over the past year. Despite the impressive payouts, it’s essential to note that with MRF’s stock trading at around ₹1,40,000, the dividend yield stands at a modest 0.15%. The last interim dividend of ₹3 was recorded on February 14, 2025, and another interim dividend was declared with a record date of November 19, 2024.
Impressive Q4 Financial Performance
In its latest financial results, MRF reported a 31% year-on-year increase in standalone profit after tax for Q4 FY25, amounting to ₹497.85 crore, compared to ₹379.55 crore in the same quarter the previous year. On a sequential basis, this profit reflects a remarkable 62% growth from ₹306.72 crore in the preceding quarter. Revenue from operations for this quarter reached ₹6,943.84 crore, marking an 11.7% YoY increase, although it remained relatively stable on a quarter-to-quarter basis.
Market Reaction to MRF’s Results
Investors responded positively to the robust financial performance and generous dividend announcement. After a day of relatively flat trading, MRF’s stock experienced a surge, climbing as much as 4.84% to reach a peak of ₹1,41,505 per share. By 2 PM, the stock was trading at ₹1,40,200, reflecting a 3.88% increase.
In summary, MRF’s recent dividend declaration and strong financial results reinforce its position as a high-value stock in India’s market, providing promising returns to its investors. As the company continues to thrive, stakeholders will undoubtedly keep a close watch on its future performance and dividend announcements.
