Adani Ports announces ₹1,080 crore worth dividend for shareholders; how much investors will get per equity share
Adani Ports' board of directors has recommended a dividend of ₹5 per share for its shareholders for FY23, subject to approval at the Annual General Meeting. This implies a dividend payout of ₹10.8 billion for the company in the fiscal.
PremiumWhile announcing the fourth quarter and year-ended earnings for the period March 31, 2023, Adani Ports' board of directors in a meeting on Tuesday recommended a dividend of ₹5 per equity share for its shareholders. The record and payment date of these dividend benefits will be announced in due course.
As per the regulatory filing, Adani Ports said, the board has recommended a dividend of ₹5/- (@ 250%) per equity share of ₹2/- each fully paid-up for the financial year 2022-23.
This is subject to the approval of shareholders at the ensuing Annual General Meeting.
This implies a dividend payout of a whopping ₹1,080 crore for the company in FY23.
Further, Adani Ports said, "The company will inform in due course the date on which the Company will hold the Annual General Meeting for the year ended 31st March 2023 and the date from which dividend will be paid or warrants thereof will be dispatched to the shareholders."
Read here: Adani Ports Q4 results: Consolidated PAT jumps 5% YoY to ₹1,159 crore, revenue rises 40%
Karan Adani, CEO and Whole Time Director of Adani Ports said, "FY23 has been a stellar year for APSEZ in operational as well as financial performance. The company has overachieved against its highest-ever revenue and EBITDA guidance provided at the beginning of the year. Our strategy of geographical diversification, cargo mix diversification, and business model transition to a transport utility is enabling robust growth."
Dividend are paid as incentives by a listed company from their net profits of a respective financial year.
Overall, in FY23, Adani Ports consolidated net profit stood at ₹5,310.18 crore versus ₹4,886.03 crore in FY22. Revenue in the fiscal jumped to ₹20,851.91 crore in FY23 compared to ₹17,118.79 crore.
On BSE, Adani Ports' share price closed at ₹734.30 apiece down by 0.43% on Tuesday.
Adani Ports is the second most valued company after flagship Adani Enterprises of the Gautam Adani-backed Group in terms of market share. The company's market cap is over ₹1.58 lakh crore as of May 30th.
Read here: MSCI rejig from 31 May: Adani Transmission, Adani Total may see outflow of $356 million as they exit; details here
At the current market price, Adani Ports' annual dividend yield stood at 0.68%.
In the previous fiscal (FY22), the company also paid a dividend of 250% aggregating to ₹5 per share to its shareholders. In FY21 as well, Adani Ports paid a dividend of ₹5 per share.
Adani Ports has evolved from a port company to an Integrated Transport Utility providing an end-to-end solution from its port gate to customer gate. It is the largest port developer and operator in India with 6 strategically located ports and terminals on the west coast and 5 ports and terminals on the East coast of India -- representing 24% of the country's total port volumes, thus providing capabilities to handle vast amounts of cargo from both coastal areas and the hinterland.
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