700% Dividend Alert: India’s largest cement company announces its highest payout ever

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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UltraTech Cement Ltd., India’s largest cement company recommended a final dividend of ₹70 per share or 700% on face value of ₹10 each.

The dividend will be subject to approval of shareholders at the company’s ensuing annual general meeting (AGM). The date for the AGM will be determined in due course.

This is the highest ever dividend payout the company has declared since at least 2019. Last year, the company had announced a dividend of ₹38 per share, and a similar quantum in 2022 as well.

In 2021, UltraTech had announced a dividend of ₹37 per share, following a ₹13 per share payout in 2020 and ₹11.5 in 2019.

UltraTech has never declared a bonus issue nor a stock split, based on the data available on the exchanges.

The cement major reported an expansion in margin for the March quarter, contrary to expectations of a contraction and also after margins of its peers saw contraction year-on-year. Lower power and fuel costs aided the company’s margin profile.

In line with expectations, realisations for UltraTech declined by 3.8% year-on-year and 6% sequentially. Power and Fuel costs were down 9% from last year during the quarter to ₹4,838 crore.

Shares of UltraTech Cement ended 2.8% higher on Monday at ₹9,970. The stock has risen 33% in the last 12 months. However, the stock is still down 5% on a year-to-date basis.

(With Inputs From Nigel D’Souza.)

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow