This is the first interim dividend for FY23, and is also the highest dividend paid by the fast moving consumer goods major since 2020.
In May 2022, the biscuit and confectionery maker had paid a dividend of Rs 56.50 a share.
In August 2020, the company had paid a dividend of Rs 83 a share, which is the highest in its history of going public.
The dividend payment by Britannia today could be to share the one-time profit it made in the December quarter from the sale of stake in French dairy subsidiary Bel SA.
The company accrued a one-time gain of Rs 376 crore from the sale of 49% stake in the joint venture firm.
Aided by the one-time gain, Britannia Industries’ net profit in the December quarter surged 151% on year to Rs 932 crore.Even after excluding the one-time gain, growth in earnings of the ‘Bourbon’ biscuit maker was strong due to better topline and improvement in the operational performance.
Aided by the better-than-peers earnings growth, shares of the company have outperformed Nifty50 by a wide margin in the last 1 year. In the last 1 year, Britannia stock has given positive returns to the tune of 34%, whereas Nifty 50 has given negative returns of over 1%.
The high dividend payout is likely to act as a booster shot for the stock on Wednesday. On Monday, the stock ended flat at Rs 4,324.05 on the National Stock Exchange.
The stock market is closed on Tuesday on the occasion of Mahavir Jayanti.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)