A smallcap tyre manufacturer Goodyear India on Thursday after market hours announced a dividend of Rs 100 per share for the financial year ended March 31. It recommended a final dividend of Rs 20 per share and a special dividend of Rs 80 per share of Rs 10 each.
Following the announcement, shares of the company traded nearly 9 per cent up at Rs 962.75 at around 2.22 pm (IST) on Friday, while the benchmark BSE Sensex traded 549 points, or 1.01 per cent higher at 54,801 at around the same time.
In a regulatory filing, Goodyear said, “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 also announced its financial results on May 26 for the quarter ended March 31. Goodyear’s posted a 5 per cent year-on-year rise in total revenue at Rs 603 crore in Q4FY22. Gross margin was negatively impacted by the higher cost of goods sold (up 10 per cent) due to increased raw material prices across all categories. Other expenses were impacted by a steep rise in fuel prices.
On the other hand, the net profit of the company plunged 60 per cent YoY to Rs 17 crore. Profit after tax as a percentage of revenue was 2.9 per cent, down from 7.5 per cent in the same period last year.
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,” Mahajan added.
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