Image Source: Religare Broking
Gujarat Alkalies and Chemicals Ltd (GACL), a leading player in India’s chemical industry, has announced a robust dividend of ₹15.8 per share for FY25, even as its March-quarter profit remained modest. The company’s board approved the dividend alongside the release of its Q4 financial results, which showed steady operational revenue but continued margin pressures.
Dividend Announcement:
GACL’s board has recommended a dividend of ₹15.8 per equity share for the financial year, maintaining its reputation for consistent shareholder rewards. This follows last year’s payout of ₹13.85 per share, reflecting a progressive dividend policy.
March Quarter Financials:
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Revenue: Consolidated revenue from operations for Q4 FY25 stood at ₹10.75 billion (₹1,075 crore), showing stable performance compared to the previous quarters and marking a slight year-on-year increase.
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Net Profit: The company reported a consolidated net profit of ₹88.2 million (₹8.82 crore) for the March quarter, reflecting ongoing margin pressures in the commodity chemicals sector.
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EPS: Basic earnings per share for the quarter stood at ₹1.16, a modest improvement from the previous year’s loss per share.
Dividend Yield and Track Record:
With the latest dividend, GACL’s yield remains attractive, and the company continues its decade-long record of annual payouts. The dividend is expected to be distributed in October, in line with the company’s historical schedule.
Operational and Market Context:
GACL’s Q4 results highlight steady sales despite a challenging cost environment, with higher raw material and energy expenses weighing on margins. The company has focused on operational efficiency and cost control to sustain profitability.
Shareholder Value:
The strong dividend, despite subdued profit, underscores GACL’s commitment to shareholder value and confidence in its long-term fundamentals.
Insight
GACL’s decision to maintain a high dividend payout, even as profits remain under pressure, signals management’s focus on rewarding shareholders and confidence in the company’s cash flow stability. While the chemical sector faces ongoing headwinds from input cost volatility, GACL’s operational resilience and prudent capital allocation continue to support its market standing.
Source: Moneycontrol, DivvyDiary, INDmoney, Economic Times
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