Rs 25 Dividend Soon By Zero-Debt PSU Company: Defence Giant HAL Records 14% Jump In Q3 PAT, Check Record Date

The stock market is experiencing significant fluctuations, with major indexes declining for the sixth day in a row. Among the stocks under scrutiny is Hindustan Aeronautics Ltd (HAL), a prominent state-owned defence company. HAL has reported robust results for the December quarter, with a 14% increase in net profit. The company has also announced its first interim dividend for FY25, enhancing shareholder value.

HAL has a consistent history of rewarding its shareholders with dividends. In 2024, the company distributed a final dividend of Rs. 13 per share and an interim dividend of Rs. 22 per share in February. Additionally, HAL executed a stock split on September 28, 2023, reducing the face value from Rs. 10 to Rs. 5 per share.

In 2023, HAL paid two dividends: a final dividend of Rs. 15 per share in August and an interim dividend of Rs. 20 per share in March. These actions reflect HAL's commitment to providing returns to its investors.

During the October to December period, HAL's net profit rose by 14% year-on-year to Rs. 1440 crore from Rs. 1261 crore in the previous year’s same quarter. The company's revenue increased to Rs. 6957 crore from Rs. 6061 crore in the same period last year.

The company's operating profit or EBITDA surged by 17.2% to Rs. 1681 crore compared to Rs. 1434 crore in the previous year’s corresponding quarter. Moreover, HAL's margin improved from 23.7% to 24.2% on a year-on-year basis.

HAL Dividend:

HAL's board has approved an interim dividend of Rs. 25 per equity share, based on a face value of Rs. 5. This translates to a 500% dividend yield per share for shareholders. The record date for this dividend is set for February 18, 2025, and the payment will be credited to shareholders' accounts by March 14, 2025.

HAL is a zero-debt company. HAL had sub-divided its stock in the ratio of 1:2 in September 2023.

HAL Stock Performance Analysis

Currently, HAL's shares are showing weakness on the BSE, trading at Rs. 3580. The stock reached its highest point of Rs. 5675 on July 9 last year and has a market capitalisation of approximately Rs. 2.39 lakh crore.

BSE Analytics indicates that HAL's stock has delivered around a 200% return over the past two years and an impressive return of 419% over three years. However, the stock's return over the last year stands at only 26%.

HAL continues to demonstrate strong financial performance and shareholder returns despite recent market volatility, reinforcing its position as a key player in India's defence sector.