Despite a slight drop in revenue, MRF managed to post a 21 per cent increase in profit-before-tax (PBT) for FY21.
It registered a stand-alone PBT of ₹1,700 crore (on a turnover of ₹16,129 crore) against ₹1,399 crore (on a ₹16,322 crore revenue) in FY20.
This has been possible due to the tyre maker’s strong performance in the fourth quarter of FY21 where it posted a PBT of ₹431 crore (₹292 crore) on a revenue of ₹4,794 crore (₹3,683 crore).
The company generated a strong cash flow of ₹5,197 crore in FY21 which more than double that of ₹2,512 crore generated in FY20.
The Board of Directors has announced a special dividend of 500 per cent to commemorate the completion of 75 years of company’s establishment.
MRF was set up as Madras Rubber Factory, a proprietorship concern to manufacture toy balloons, way back in 1946. The total dividend this year works out to a staggering 1500 per cent.
The promoters hold a 28 per cent stake in the company, while the public hold 72 per cent.
The company, in a statement, said the second wave of coronavirus has affected its operations and it expects its business to return to normalcy in a month or two once the situation across the country stabilises.