MRF has announced a final dividend of ₹194 per share for the fiscal year ending March 31, 2024, on the back of the company recording a 170 per cent increase in net profit, which crossed the ₹2,000-crore mark at ₹2,081 crore, against ₹769 crore in 2022-23.

The Chennai-headquartered tyre maker has the priciest share in the market. MRF’s share (of ₹10 face value) closed at ₹1,28,495 on the BSE on Friday, ₹5,431.25 lower than the previous close.

“Profits for the year increased due to higher sales, lower raw material costs, and improved efficiencies,” according to a statement.

Its consolidated total income was higher at ₹25,486 crore in FY24, compared with ₹23,261 crore in the previous year. Exports stood at ₹1,887 crore, as against ₹1,877 crore.

In FY24, there were hardly any price increases when compared with previous years. One of our top-selling radial truck tyres even saw a price decrease. As a result, growth achieved is solely due to the strength of our brand and products, it said.

The consolidated profit before tax stood at ₹2,787 crore, as against ₹1,070 crore in FY23, after making a provision of ₹145 crore in the last quarter towards liability for Extended Producers’ Responsibility imposed on the tyre industry by the Centre. The tax expense for FY24 was higher at ₹706 crore (₹301 crore in FY23).

For the quarter ended March 31, 2024, consolidated net profit was higher at ₹396 crore when compared with ₹341 crore. Consolidated sales stood at ₹6,443 crore, as against ₹5,912 crore.

On a standalone basis, the company’s net profit was lower at ₹380 crore for the March 2024 quarter, when compared with ₹411 crore in the March 2023 quarter. Standalone sales were higher at ₹6,307 crore, as against ₹5,793 crore.

For the full year FY24, net profit stood at ₹2,041 crore (₹816 crore in FY23), while standalone sales were higher at ₹24,986 crore when compared with ₹22,826 crore.

During FY24, MRF made a foray into the high-end bike steel radial tyre segment. Though this is not a huge market, it was the preserve of imported brands for a long time. MRF has been able to fill this gap, it said.

MRF had already declared and paid two interim dividends of ₹3 each (30%) per share for the financial year ended March 31, 2024. With the board recommending a final dividend of ₹194 per share of ₹10 each on Friday, the aggregate dividend for FY24 works out to ₹200 (2000%) per share of ₹10 each.