Mumbai: Tyre maker MRF Ltd has announced a month’s salary as bonus for employees who did not receive an increment in 2020, in what is early good tidings from a company that is getting back on track after the disruption caused by the pandemic.
“We are disbursing to all MRF staff that went without an increment last year one month’s salary as a token of our appreciation for a sparkling performance, in spite of the heavy odds we faced,” chairman KM Mammen said in an internal communication, which ET has seen.
The company’s profits more than doubled to Rs 521 crore during the December quarter as tyre demand recovered sharply on the back of sustained growth in economic activity.
MRF could not be reached for comments.
Other tyre makers, such as JK Tyre and Ceat Ltd., have also reportedly reversed salary cuts and paid bonuses to employees after their December-quarter earnings. The revival in economic activity and a sharp fall in tyre imports following the government’s restrictions augur well for domestic tyre makers, according to analysts. Automobile sales too have been recovering, leading to higher demand for tyres from automakers.
MRF Ltd’s board also announced a second interim dividend of Rs 3 per equity share for FY21. The highest priced share on the Indian bourses bore a similar dividend earlier in this financial year.
On Tuesday, the company’s shares closed 1.16% lower on the BSE at Rs 89,392.4.