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RITES declares interim dividend of 60%

State-run RITES Limited has declared an interim dividend of 60 percent, amounting to Rs 6 per share, the company said in an official release
New Delhi: State-run RITES Limited has declared an interim dividend of 60 percent, amounting to Rs 6 per share, an official release said. The Board of Directors of RITES Ltd, a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise under the Ministry of Railways, in its meeting held on Monday declared an interim dividend of Rs 6 per share of Rs 10 each (at the rate of 60 percent of paid-up capital).

‘Growth has enabled RITES to announce healthy dividend’

“RITES has demonstrated its capacity to execute across segments and simultaneously able to protect its margins in the H1 of FY20. We had a strong H1 FY20, where we have seen our standalone revenue going up by 71 percent and profit-after-tax up by 72 percent on year-on-year basis. This growth has enabled us to announce healthy interim dividend,” said Rajeev Mehrotra, Chairman and Managing Director, RITES Limited.

RITES to acquire IRSDCL

The record date for the purpose of payment of dividend is January 10, 2020. The Board of Directors has also approved an investment of Rs 48 crore for acquiring a stake of 24 percent in Indian Railways Station Development Corporation Ltd. This investment is being done at face value i.e. Rs 10 per share and will provide RITES an opportunity of growth in the emerging field of development of railway stations.

The backdrop

The standalone revenue of the company for the first half of FY20 has been Rs 1,423 crore and profit after tax has been Rs 325 crore. For FY20 so far, the company’s dividend payout ratio stands at 46 percent (on 6 month PAT). In FY19, the company generated a standalone profit after tax of Rs 445 crore and declared a dividend of Rs 255 crore.