Rs 7.8/Share Dividend: Govt-Backed Power Stock To Trade Ex-Dividend For Rs 231 Crore Dividend Payout

Government-backed power trading company, PTC India will be in focus on Wednesday as it will trade ex-dividend for a whopping Rs 231 crore dividends payout to shareholders. Currently, the smallcap stock is flirting near its 52-week high. Year-to-date, the stock has rallied by over 76% on the BSE.

As per the regulatory filing, the company declared a final dividend of 78% amounting to Rs 7.80 per share having a face value of Rs 10 each for the financial year 2022-23. The final dividend, if approved, at the ensuing Annual General Meeting (AGM) will result in a cash outflow of Rs 230.89 crore. The dividends will be paid on 29,60,08,321 equity shares as per the ownership on September 20, 2023.

Hence, the stock will turn ex-dividend on September 20.

Those shareholders will be eligible who hold PTC India shares in dematerialized and physical form before the close of business hours on September 20, 2023.

In the June 2023 quarter, the company recorded a consolidated PAT of Rs 143 crore, while the earnings per share (EPS) surged to Rs 4.39 in Q1FY24. On a standalone basis, trading Volumes increased by 16% in Q1FY24 to 20.6 BU compared to 17.6 BU in Q1FY23.

FY23 net profit of PTC India stood at Rs 369.74 crore, while turnover stood at Rs 14,909.57 crore. From the profits, the company transferred Rs 116.71 crore to its general reserves during the financial year -- taking the total reserves and surplus to Rs 3,836.27 crore.

Dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year. The record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

PTC India has declared dividends since June 2004.

On Monday, PTC India shares stood at Rs 150 apiece on BSE. The stock was near its 52-week high of Rs 158.70 apiece.

On the current market price, the company's dividend yield was at 3.87%.

PTC India Ltd., a Government of India initiative, is the pioneer in starting a power market in India. The company has maintained its leadership position in power trading since its inception. PTC has also been mandated by the Government of India to trade electricity with Bhutan, Nepal and Bangladesh

The trading activities undertaken by PTC include long-term trading of power generated from large power projects including renewables as well as short-term trading arising as a result of supply and demand mismatches, which inevitably occur in various regions of the country.

PTC is a unique example of a successful public-private partnership with major PSUs of the Ministry of Power, Government of India as promoters and a widely held ownership interest. The diverse composition of its Board of Directors includes eminent people as independent directors.