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The total dividend payout by Coal India during the current fiscal is likely to be higher than the 2020-21 financial year as the miner is expected to post healthy revenue and growth in profit, sources said on Sunday.
A “decent second interim dividend” for 2021-22 is likely to be announced on Monday, they said.
The Maharatna public sector undertaking has already announced the first interim dividend at Rs 9 per share in December this fiscal to provide support to the government for its growing expenditure in the wake of the COVID-19 pandemic.
The interim dividend outgo was around Rs 5,546 crore and the government was the largest beneficiary as it received approximately Rs 3,667 crore for its over 66 per cent stake in the coal behemoth. Other categories of investors had the remaining share.
The total dividend payout is likely to be higher this year as profit and revenue are expected to be better, a source said.
The miner had announced a total dividend at Rs 16 per share last fiscal.
“The bottleneck for Coal India to give high dividends is its inability to hike coal prices this year due to several factors. The bottomline (profit) gets affected by increasing input costs. A fresh round of wage revision is also pending. An announcement in this regard is expected after the assembly elections in five states,” another source said.
A board meeting of Coal India will be held on Monday to consider and approve the third-quarter results.
“The board will consider the payment of second interim dividend if any,” the source said.
A dividend between Rs 5 and 7 per share in the second round of cash payout to shareholders is likely to be announced, an analyst said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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