Over the past year, MRF has distributed an equity dividend of Rs 200 per share.

Final day to buy MRF shares for dividend eligibility ahead of ex-dividend date

The board of MRF, in its recent meeting, announced the interim dividend while also releasing its financial results for the second quarter that ended on September 30, 2024.

by · India Today

In Short

  • Last chance to buy MRF shares for interim dividend
  • MRF's dividend yield is 0.17% with current share price
  • Q2 net profit declined 20% but revenue grew 11%

Today marks the last opportunity for investors to purchase shares of MRF to be eligible for the interim dividend of Rs 3 per share. This comes ahead of the company’s ex-dividend date and the record date set for November 19, 2024.

The board of MRF, in its recent meeting, announced the interim dividend while also releasing its financial results for the second quarter that ended on September 30, 2024. According to the company’s filing with stock exchanges, the dividend will be paid to eligible shareholders on or before November 29, 2024.

UNDERSTANDING THE DIVIDEND ELIGIBILITY

Under the T+1 settlement framework, the record date and ex-dividend date often coincide unless interrupted by a market holiday. For investors to qualify for the dividend, they must own the stock before the ex-dividend date. Shares bought on or after the ex-dividend date will not be eligible for the declared dividend.

DIVIDEND YIELD

Over the past year, MRF has distributed an equity dividend of Rs 200 per share. At the current share price of Rs 1,20,551.75, the dividend yield stands at 0.17%, reflecting its consistent, albeit modest, returns for shareholders.

FINANCIAL PERFORMANCE

In the second quarter of FY25, MRF recorded a 20% decline in standalone net profit, which fell to Rs 455 crore compared with Rs 572 crore in the same period last year.

However, revenue from operations grew by 11% year-on-year, reaching Rs 6760 crore in the July-September 2024 period. The tyre manufacturer’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 974 crore, down 14% from Rs 1129 crore in the previous year.

Margins also saw a contraction, dropping to 14.4% from the earlier levels, reflecting challenges in managing costs and maintaining profitability.

MRF SHARE PERFORMANCE

On Thursday, MRF shares ended flat, closing at Rs 1,20,662.55 on the Bombay Stock Exchange (BSE). The stock has seen limited movement recently, even as market participants track the dividend announcement and its financial results.