The dividend distributed by public sector undertakings (PSUs) hit a record high of ₹1.5 lakh crore in FY24, bolstered by improved profitability and strong order books. In comparison, the listed PSUs in the country had doled out ₹1.07 lakh crore in previous year, show dividend data analysed by CNBC-TV18.
While the aggregate net profit of all state-owned firms in the country increased by 44.3% to ₹5.3 lakh crore in FY24, the dividend distribution gone up by 36.1% during the financial year. That translates a dividend payout ratio of 27.6% for the year. The dividend payout ratio measures the percentage of net profit that a company distributes to its shareholders in the form of dividends.
When it comes to rewarding shareholders, the PSU basket is known for their generous payouts. The government, which holds nearly 61% of these PSUs, is to benefit from this dividend bonanza. In last month, the Reserve Bank of India (RBI) had announced a record ₹2.1 lakh crore as dividend. The record dividend from both corporates and the Central bank would provide as a cushion for the government to meet its higher capital expenditure (capex) spending without significantly impacting the fiscal deficit goals.
Among listed PSUs, Indian Oil Corporation (IOCL) announced the highest dividend in FY24, which was followed by Coal India, ONGC, State Bank of India, Power Grid Corporation. While IOCL doled out ₹16,526 crore as dividend, both Coal India and ONGC distributed ₹15,715 crore and ₹15,411 crore, respectively.
The country’s largest lender –State Bank of India--distributed ₹12,228 crore as dividend, whereas Power Grid Corporation given out ₹10,463 core divided in FY24. Interestingly, the top five companies account for 48% of the total dividend payouts for the year.
Even as oil-marketing companies leading the table with higher payouts, lenders are not far behind. During the year, State-owned lenders together declared a dividend of about ₹28,000 crore, with 65% of which being entitled by the government.
Both the Nifty PSE index and Nifty PSU Bank Index have outperformed the benchmark Nifty50 in a distant margin. While the Nifty PSE index has more than doubled over the last one year, the Nifty PSU Bank index has rallied 80% during the same period. In comparison, the Nifty50 is up by 25% in the last 12-months.
While the aggregate net profit of all state-owned firms in the country increased by 44.3% to ₹5.3 lakh crore in FY24, the dividend distribution gone up by 36.1% during the financial year. That translates a dividend payout ratio of 27.6% for the year. The dividend payout ratio measures the percentage of net profit that a company distributes to its shareholders in the form of dividends.
When it comes to rewarding shareholders, the PSU basket is known for their generous payouts. The government, which holds nearly 61% of these PSUs, is to benefit from this dividend bonanza. In last month, the Reserve Bank of India (RBI) had announced a record ₹2.1 lakh crore as dividend. The record dividend from both corporates and the Central bank would provide as a cushion for the government to meet its higher capital expenditure (capex) spending without significantly impacting the fiscal deficit goals.
Among listed PSUs, Indian Oil Corporation (IOCL) announced the highest dividend in FY24, which was followed by Coal India, ONGC, State Bank of India, Power Grid Corporation. While IOCL doled out ₹16,526 crore as dividend, both Coal India and ONGC distributed ₹15,715 crore and ₹15,411 crore, respectively.
The country’s largest lender –State Bank of India--distributed ₹12,228 crore as dividend, whereas Power Grid Corporation given out ₹10,463 core divided in FY24. Interestingly, the top five companies account for 48% of the total dividend payouts for the year.
Even as oil-marketing companies leading the table with higher payouts, lenders are not far behind. During the year, State-owned lenders together declared a dividend of about ₹28,000 crore, with 65% of which being entitled by the government.
Both the Nifty PSE index and Nifty PSU Bank Index have outperformed the benchmark Nifty50 in a distant margin. While the Nifty PSE index has more than doubled over the last one year, the Nifty PSU Bank index has rallied 80% during the same period. In comparison, the Nifty50 is up by 25% in the last 12-months.
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