Central public sector enterprises are likely to dole out 40% more dividend in the current fiscal, per the latest guidelines provided by the Department of Investment and Public Asset Management, an analysis by NDTV Profit suggests.
Of the 51 such companies in the Nifty 500 index, 38 could be looking at an increased dividend payout against the prior year.
According to the new guidelines, the dividend paid by such companies must amount to more than:
4% of net worth of the company (excluding those in the financial sector)
30% of profits after tax for the period.
The earlier guidelines factored for 5% of the companies' net worth, or 30% of profits.
The new guidelines could amount to a payout of over Rs 43,800 crore more than last year, assuming an increase in net worth and profits by at least 5% during fiscal 2025.
State Bank of India, Life Insurance Corporation of India, and Bharat Petroleum Corp. are likely to see the largest increase in dividend payout.
On the other hand, Power Grid Corporation of India Ltd., NMDC Ltd., and NTPC Ltd. may need to pay less.
In fiscal 2024, as many as 24 companies did not pay dividends as per the earlier guidelines, while 25 paid more than the minimum prescribed under the guidelines. Five companies did not pay any dividends during the year.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.