On Thursday last week, auto components manufacturer, Goodyear India announced a dividend of ₹100 per share for the financial year ended March 31. It has recommended a final dividend of ₹ 20 per share and a special dividend of ₹80 per share.
Within a week of this announcement, the shares of the company soared from ₹877.45 levels to ₹1034 levels, up 17.18%.
“The final and special dividend, if approved by the members, at the forthcoming annual general meeting scheduled to be held on Monday, August 1, 2022, shall be paid within the statutory time limit to those members whose names would appear in the register of members on Monday, July 25, 2022,” the company said in a regulatory filing.
The company has been paying dividends since 2013. Currently, it has a dividend yield of 9.87%. It has a market capitalization of ₹ 2,337 crores. Its shares changed 24,73,057 hands-on Thursday.
In 2020 the company paid ₹ 93, in 2021 the company paid ₹ 98 and this year the company will pay ₹ 100
In addition, the company also announced its financial results on 26th May for the fourth quarter ended March 31, 2022. It posted a 5% year on year increase in its total revenue at ₹ 603 crores in Q4FY22, however, its gross margin was negatively impacted by the higher cost of goods sold (up 10%) due to increased raw material prices across all categories. Further, its other expenses were impacted by a steep rise in fuel prices.
Sandeep Mahajan, chairman and managing director of Goodyear India said, “The overall business environment remains challenging. We’re focused on offsetting high inflation with pricing and cost actions, expanding our distribution, and capturing opportunities for driving profitable growth.”
“Despite the demand impact from the most recent Omicron wave, our consumer replacement business continues to perform well with steady year-over-year growth, leveraging the strength of the Goodyear brand and our industry-leading products,” he added.
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