Britannia board has declared the payment of a whopping 7200 per cent dividend per share
Britannia Dividend 2023: FMCG major Britannia Industries has informed exchanges that its board has approved the payment of an interim dividend to its shareholders. The company in a filing said that the board at a meeting held on Tuesday considered and approved the payment of dividend for the financial year 2022-23. The board of the company in its meeting held on Tuesday declared an interim dividend of 7200 per cent i.e, Rs 72 per equity share of the face value of Re 1 each for 2022-23, Britannia Industries said in an exchange filing.
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Britannia Dividend Yield
The board has declared the payment of a whopping 7200 per cent dividend per share, bearing a face value of Re 1 each. Dividend is declared on the face value of the share and it has nothing to do with the market price. The dividend rate is calculated as a percentage of the face value of each share.
In May 2022, the biscuit and confectionery maker had paid a dividend of Rs 56.50 a share.
In August 2020, the company had paid a dividend of Rs 83 a share, which is the highest in its history of going public.
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Britannia Dividend Record Date 2023
The company has also fixed the record date for determining the eligibility of shareholders for the payment of dividend amount. The record date is April 13. The stock will also trade ex-date on the same date.
“the record date for determining the eligibility of shareholders for payment of Interim Dividend is Thursday, 13th April, 2023,” the filing read, adding that the interim dividend is subject to deduction/withholding of applicable taxes and will be paid within the stipulated timelines as prescribed under law.
The dividend payment by Britannia today could be to share the one-time profit it made in the December quarter from the sale of stake in French dairy subsidiary Bel SA.
The company accrued a one-time gain of Rs 376 crore from the sale of 49per cent stake in the joint venture firm.
Aided by the one-time gain, Britannia Industries’ net profit in the December quarter surged 151per cent on year to Rs 932 crore.
Even after excluding the one-time gain, growth in earnings of the ‘Bourbon’ biscuit maker was strong due to better topline and improvement in the operational performance.
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Aided by the better-than-peers earnings growth, shares of the company have outperformed Nifty50 by a wide margin in the last 1 year. In the last 1 year, Britannia stock has given positive returns to the tune of 34per cent, whereas Nifty 50 has given negative returns of over 1per cent.
The high dividend payout is likely to act as a booster shot for the stock on Wednesday. On Monday, the stock ended flat at Rs 4,324.05 on the National Stock Exchange.
