2565% Dividend In FY23: Paint Company Fixes Record Date For First Interim Dividend For FY24; Do You Own?

Multinational paint company, Asian Paints has proposed to the first interim dividend for financial year 2023-24 after rewarding shareholders with a huge 2565% dividend payout in for full-year FY23. This makes Asian Paints among top dividend paying stocks. The proposal will be considered in a meeting due on October 26 when the company's board will approve the financial results for September 30, 2023 quarter.

In its regulatory filing, Asian Paints said, "This is to inform you that a meeting of the Board of Directors of the Company will be held on Thursday, 26th October, 2023, inter alia, to consider the following:

1. Approval of audited standalone financial results of the Company for the quarter and half-year ending 30th September, 2023;

2. Approval of unaudited consolidated financial results of the Company for the quarter and half-year ending 30th September, 2023; and

3. Declaration of interim dividend, if any, for the financial year ending 31st March, 2024."

Further, the company fixed November 3, 2023, as the record date to determine eligible shareholders for the interim dividend of FY24.

On BSE, this paint stock ended at Rs 3196 apiece, down by 1.32% on Friday. On this price level, the company's dividend yield comes around 0.80%.

In the financial year 2022-23, Asian Paints paid a total dividend of 2565% to the tune of Rs 25.65 per share. As per Trendlyne data, the company has held a consistent track record of paying dividend as much as 49 dividends since October 2000.

In the first quarter of FY24, the company's total net sales stood at 9,153.8 crore, registering a growth of 6.7% YoY. It saw improvement in gross margins by 530 basis points in Q1 FY'24 as compared to Q1 FY'23. Net Profit after minority interest increased by 52.5% to Rs 1,550.4 crore from Rs 1,016.9 crore. In the quarter. the company recorded double-digit volume and healthy value growth in Decorative Business (India). Also, its home décor benefitted from high growth trajectory in fabrics, decorative lighting, UPVC windows & doors; focused on scaling up Kitchen & Bath.

Asian Paints is India's leading paint and decor company and ranked among the top 7 coatings companies in the world with a consolidated turnover of Rs 34,489 crore (Rs 345 billion) with a market capital of approximately Rs 3,400 billion.

Asian Paints along with its subsidiaries have operations in 15 countries across the world with 27 paint manufacturing facilities, servicing consumers in over 60+ countries through Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints. Asian Paints also offers a wide range of Home Décor products and is an emerging strong player in the Home Improvement and Décor space in India.