India's largest carmaker, Maruti Suzuki India on Wednesday announced a dividend of Rs 90 per share, a payout of 1,800% given the face value of Rs 5 per share. This is the final dividend for FY23, which ended on March 31, 2023
Maruti Suzuki said the latest dividend, subject to approval by shareholders at the company's annual general meeting (AGM), is its highest ever. For the year ended March 2023, Maruti Suzuki had given a dividend of Rs 60 per share
The dividend payment is scheduled for September 6, 2023, subject to shareholders’ approval in the ensuing annual general meeting on August 29, 2023. Maruti's total dividend for FY23 aggregates to Rs 2,719 crore, an increase of 50% over the last financial year
With the highest-ever dividend of Rs 90 per share for FY23, Maruti Suzuki has been distributing more than a third of its net profit as dividends over the past seven years
Despite an increased payout in absolute terms, the payout ratio for FY23 stands lower at 33.8% against last year’s payout ratio of 46.7%. Maruti Suzuki had doled out Rs 1,812 crore as dividend in FY22 on a lower profit of Rs 3,766 crore
Here's Maruti Suzuki's dividend ration of the last 5 financial years, according to Bloomberg
Here are Maruti Suzuki’s dividend announcements in the past five years
The increase in dividend payout comes at a time when Maruti Suzuki shares have been lagging on the bourses. The stock has yielded a negative return of 3% over the last 5 years against Nifty50’s gain of 66% during the same period
Maruti Suzuki shares have underperformed the benchmark Nifty50 consistently in four years through 2021. Currently, the stock is trading at around 15% lower than its record high of Rs 10,000, hit in December 2017
Maruti Suzuki has become the first passenger vehicle maker in India to cross Rs 1 lakh crore ($14.5 billion) in revenues, entering the league of top 30 automakers globally, according to Bloomberg data. This is the second Indian PV maker in the global ranking after Tata Motors to enter the league
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