Maharatna Company Approves Final Dividend, Gains 81% From 1 Yr Low

A large-cap financial services company with Maharatna CPSE certification from the Indian government is REC Ltd. It is a well-known infrastructure finance firm in India, with 22 locations spread out all over the nation.

The Board of Directors has considered and approved the recommendation of final dividend of Rs 4.35 per share of Rs 10 each for the financial year 2022-23, subject to the approval of the shareholders in the ensuing AGM. "This is in addition to the Interim Dividends of Rs 8.25 per equity share already declared and paid during the financial year 2022-23 in two tranches, thereby making total dividend for the financial year 2022-23 to Rs 12.60 per share on the face value of Rs 10 each," said REC in a stock exchange filing.

Furthermore, if announced at the AGM, the final dividend shall be paid within 30 days after the declaration date. The record date to determine a member's eligibility to receive the final dividend has been set by the board as Friday, July 14.

REC has announced an equity dividend of 82.50% at a face value of Rs 10, or Rs 8.25 per share, for the fiscal year ended on March 2023. The dividend yield at the current share price of Rs 156.15 is 5.29%. The company has a solid track record of dividend declarations during the past five years. REC Ltd. has issued 32 dividends since September 8, 2008, according to data from Trendlyne. REC Ltd. issued an equity dividend worth Rs 13.05 per share for the last 12 months. The dividend yield at the current share price of Rs 156.15 is 8.37% and after adjusting for bonus shares and stock splits the dividend yield is 7.60%.

For the fiscal year's fourth quarter that ended in March (Q4FY23), the firm recorded a spike in its consolidated net profit of 33% year on year (YoY), from Rs 2,301.33 crore to Rs 3,065.37 crore. Consolidated total revenue from operations for the firm increased 6.3% year on year to Rs 10,243.06 crore from Rs 9,633.36 crore during the same period the prior year. The total expenses for the March quarter were down 6.5% to Rs 6,353.40 crore, while interest income from loan assets was up 7.2% year over year to Rs 9,903.61 crore from Rs 9,235.26 crore in Q4FY22. In FY2023, the consolidated net profit was Rs 11,166.98, up from Rs 10,035.70 in FY2022. The total revenue from operations stood at Rs 39,478.26 crore in 12MFY23 compared to Rs 39,269.05 crore in 12MFY22.

On Friday, the shares of REC closed on the BSE at Rs 156.15 apiece down by 1.79% from the previous close of Rs 159.00. The stock made a 52-week-high of Rs 168.70 on (21/06/2023) and a 52-week-low of Rs 86.06 on (23/06/2022), indicating that at the current market price, the stock is trading 7.43% below the 1-year high and 81.44% above the 1 year low.