1:2 Split, 1:1 Bonus, Rs 28/Sh Dividend: Mahindra's IT Stock To Pay 560% Dividend; Check Record, Payment Dates

Despite mixed quarterly earnings, Mahindra Group-backed IT giant Tech Mahindra has decided to end FY24 on a much sweeter note with hefty rewards in the form of a final Rs 28 per share dividend for its shareholders. Tech Mahindra's sequential profitability and EBITDA were healthy, while other key verticles declined in Q4FY24 and the full year.

Tech Mahindra has announced the record and payment date for the upcoming dividend. {image-dividend6002-1714058061.jpgwww.goodreturns.in}

The final dividend payout is Rs 28 per share having a face value of Rs 5 each. In percentage terms, the final dividend will be 560%. Tech Mahindra said that if approved this final dividend will be paid on or before August 9, 2024. The record date for the same is yet to be announced.

Notably, the final dividend is in addition to the Interim Dividend of Rs. 12/- per equity share paid by the company in November 2023.

Accordingly, for FY24, Tech Mahindra will pay dividends up to Rs 40 per share or 800% on the face value of Rs 5 each.

As per Trendlyne data, Tech Mahindra has a long history of paying dividends to its shareholders. Since March 2007, the company has delivered up to 26 dividends.

Currently, it has a dividend yield of 3.70%.

But that's not all, in less than a decade, apart from dividend payouts. the company has also rewarded investors in the form of bonus issues and stock splits.

In March 2015, Tech Mahindra turned ex-split for its sub-division in the ratio of 1:2. The face value of Rs 10 per equity share was halved to a face value of Rs 5 each on every equity share. This led to double the number of equity shares in investors' portfolios, while the share price of Tech Mahindra emerged as attractive and affordable.

Along the lines, Tech Mahindra also delivered bonus issues in the ratio of 1:1 effective from March 19, 2015. This led to also double the number of shares. Because a 1:1 ratio means that 1 bonus share was added to 1 existing equity share.

Tech Mahindra Q4 Results:

In the rupee terms, Tech Mahindra's revenue stood at Rs 12,871 crore in Q4FY24, declining by 1.8% QoQ and 6.2% YoY. However, the operating profit and bottom-line front witnessed a mixed trend. EBITDA was at Rs 1,408 crore, up by 22.8% QoQ but down by 30.3% YoY.

Due to a surge in operating profit on a quarter-on-quarter basis, Tech Mahindra's Q4 PAT jumped 29.5% to Rs 661 crore but tumbled by 40.9% YoY. The earnings per share is at Rs 7.45 by the end of the quarter.

In dollar terms, Tech Mahindra's revenue dipped by 1.6% QoQ and 7.2% YoY to $1,548 million in the quarter under review. Its constant currency revenue plunged by 0.8% QoQ and 6.4% YoY. Profit after tax (PAT) was at $79 million; up 29.5% QoQ, down 41.5% YoY. EBITOA at $169 million; up 22.9% QoQ, down 31.1% YoY; Margin at 10.9%, up 220 bps QoQ.