700% Dividend, Ex-Date June 25: Tata Group IT Stock Collaborates With Red Hat

Large cap Tata Group company operating in IT Software sector, Tata Elxsi share gained 0.47% to 7266.15 per share after it announced its collaboration with Red Hat, the world's leading provider of enterprise open-source solutions to monetise applications and reduce operational expenditures through simplifying operations in 5G networks for Telcos and enterprises. Earlier, Tata Elxsi announced its highest ever dividend of Rs 70/Share in history on March 23, 2024.

The record date and ex-dividend date of Tata Elxsi's dividend fixed as June 25, 2024. Life Insurance Corporation of India (LIC) has 1.97% stake in Tata Elxsi as the insurance giant holds 1,226,008 shares of the company. Tata Elxsi shares gained 745% in last 5-years but slipped 17% year-to-date. More details below:

Tata Elxsi Collaborates With Red Hat: As per the BSE filing of Tata Elxsi dated June 13, "the collaboration aims to create a use case factory to help global operators monetize their networks using industry specific 5G applications across transportation, manufacturing, healthcare, through proven verticalized applications and joint solutions."

"Collaborating with Tata Elxsi, we are excited to leverage Red Hat OpenShift to provide telcos with enhanced monetization opportunities. This work is a testament to our commitment to delivering innovative solutions that drive growth and efficiency in the telecom sector." Mark Longwell, director, telco and edge alliances, Red Hat.

Tata Elxsi Dividend: According to the exchange filing of Tata Elxsi issued as on April 23, 2024, "Board of Directors has recommended a dividend of 700% at Rs. 70/-, per equity share of Rs. 10 each, for the financial year 2023-24, subject to tax, which shall be paid/dispatched on or after the seventh day from the conclusion of the 35 th Annual General Meeting, subject to the approval of the shareholders of the Company."

Tata Elxsi Declares Record Date: "Dividends will be payable to those shareholders whose names appear in the list of beneficial owners as at the closure of business hours on Tuesday, June 25, 2024," Tata Elxsi said in an exchange filing.

Tata Elxsi Financial Performance: Tata Elxsi announced a fall of 4.6% quarter-on-quarter (QoQ) in net profit for the March quarter at Rs 196.93 crore as compared to Rs 206.4 crore announced in the Oct-December quarter of FY2024. Its bottomline came 2.32% lower for March 2024 quarter than Rs 201.5 crore declared an year ago.

Tata Elxsi's revenue from operations fell 1% for Q4 of FY2024 at Rs 905.9 crore as against Rs 914.23 crore announced in the preceding quarter, but remained higher than Rs 837.91 crore announced an year ago. EBIT margin witnessed growth to 25.8% for the quarter under review as against 26.8% in the last quarter amid operational efficiencies.

Tata Elxsi Share Performance: The 52-week high price of the stock is Rs 9191.10 apiece (as on 18/12/2023) and 52-week low price is Rs 6,264.20 apiece (27/04/2023), respectively. Tata Elxsi shares gained nearly 4% in last 2-weeks, declined 19% in last 6-months, slipped 6% in last 1-year, and offered 90% return in last 2-years.

Tata Elxsi Bonus Share: It declared 1 bonus issue since September 18, 2017. The bonus issue was declared in the ratio of 1:1 with ex-bonus date set as September 18, 2017.

Tata Elxsi Dividend History: The large cap stock declared 25 dividends since June 21, 2001. In last 1-year, Tata Elxsi announced an equity dividend amounting to Rs 60.60 per share. At the current share price of Rs 7266.15 per share, it offers a dividend yield of 0.83%, according to Trendlyne.

About: Tata Elxsi started business on May 5 1989 in Bangalore, the Silicon Valley of India, to develop and promote applications of electronics, embedded systems, and software. The Mission was to foster innovation in the fast-emerging IT market and accelerate the adoption of leading-edge technologies, as per the company's website.

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