1500% Dividend/Share: Large Cap IT Stock To Turn Ex-Dividend Tomorrow

L&T Technology Services Ltd is a large-cap IT company that recorded a market cap of Rs 42,349.53 Cr in Wednesday's closing session. At its meeting conducted on April 26, 2023, the company's board of directors recommended a massive dividend payout of 1500% per share for FY23. The stock is going to trade ex-dividend tomorrow, let's check out why.

L&T Technology Services said its Board of Directors have recommended a final dividend of 1,500 % i.e. Rs. 30/- per equity share of face value of Rs 2.00/- each, subject to the approval of the shareholders of the company.

"Pursuant to Regulation 42 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the Company has fixed Friday, July 7, 2023, as the "Record Date" for the purpose of determining the Members eligible to receive dividend for the financial year 2022-23. The Final Dividend if approved at the AGM shall be paid by the Company on or after July 24, 2023," L&T Technology Services informed stock exchanges while announcing the record date for the above-mentioned dividend.

As per the data available on BSE, due to the T+1 settlement mechanism of L&T Technology Services, the stock is going to trade on the same day i.e. July 7, 2023.

L&T Technology Services has announced an equity dividend of 2250.00% at a face value of Rs 2 equaling Rs 45 per share for the fiscal year ended March 2023. The dividend yield at the current share price of Rs 4007.80 is 1.12%. The company has a solid track record of dividend declarations during the past five years. Since November 21, 2016, L&T Technology Services Ltd. has issued 15 dividends, according to data from Trendlyne.

In the fourth quarter that ended March 31, 2023, the company's net profit jumped by 18% year on year to Rs 309.6 crore from Rs 262 crore in the same period of FY22. Total revenue for the March quarter was Rs 2,096.2 crore in Q4FY23, up 19% from Rs 1,756.1 crore in Q4FY22. Earnings before interest and tax (EBIT) for the firm climbed by 2.6 percent to Rs 392.7 crore from Rs 382.9 crore. The EBIT margin in the March quarter remained constant at 18.7%. L&T Technology Services is yet to declare its Q1FY24 earnings.

On Wednesday, the shares of L&T Technology Services Ltd closed on the BSE at Rs 4007.80 apiece up by 1.51% from the previous close of Rs 3948 apiece. The stock made a 52-week-high of Rs 4,316.75 on (02/12/2022) and a 52-week-low of Rs 2,936.85 on (06/07/2022). During Q4FY23, the company reported promoter shareholding of 73.85%, FIIs stake of 6.69%, DIIs stake of 8.41%, and public stake of 11.06%.