Vidhi Specialty Food Ingredients Ltd, a leading manufacturer of synthetic food-grade colors, has announced its first interim dividend for the financial year 2025. The Board of Directors has approved a dividend of 1.50 rupees per equity share, reflecting a payout ratio of 150 percent on the face value of 1 rupee. This move underscores the company’s consistent profitability, strong cash flows, and commitment to rewarding its shareholders.
Key highlights from the dividend declaration
- First interim dividend of 1.50 rupees per share for FY25
- Dividend percentage stands at 150 percent on face value
- Record date set for 24 January 2025
- Ex-dividend date also confirmed as 24 January 2025
- Announcement date: 15 January 2025
Dividend rationale and financial strength
1. Strong earnings and liquidity
- Vidhi Specialty has maintained a healthy profit trajectory over recent quarters, with net income rising steadily year-on-year
- The company’s debt-free status and robust cash reserves have enabled consistent dividend payouts
- Operational efficiency and margin discipline have supported free cash flow generation
2. Historical dividend consistency
- The company has declared multiple interim and final dividends over the past three years, with increasing payout values
- In FY24, Vidhi Specialty declared three interim dividends and one final dividend, totaling 4.10 rupees per share
- The current declaration continues its track record of quarterly shareholder rewards
3. Market positioning and investor sentiment
- Vidhi Specialty’s dividend yield stands at approximately 0.97 percent, based on current market price
- The stock has delivered long-term capital appreciation, with a five-year return exceeding 470 percent
- Promoter holding remains stable, reflecting management’s confidence in future growth
Strategic outlook and operational updates
- The company is expanding its product portfolio to include natural colors and blends, catering to evolving consumer preferences
- Commercial production has commenced at its new facility in Dahej, Gujarat, enhancing capacity and geographic reach
- Vidhi Specialty continues to export to over 80 countries, reinforcing its global footprint
- ESG initiatives include solar power adoption, water conservation, and sustainable packaging practices
Shareholder eligibility and dividend process
- Shareholders holding equity shares as of the record date, 24 January 2025, will be eligible to receive the dividend
- The dividend will be credited directly to shareholders’ bank accounts linked to their demat holdings
- Investors are advised to ensure updated bank and demat details to avoid delays in credit
Leadership commentary
The Board expressed satisfaction with the company’s financial performance and reaffirmed its commitment to delivering value to stakeholders. The interim dividend reflects Vidhi Specialty’s confidence in its business fundamentals and its intent to maintain a balanced capital allocation strategy.
Conclusion
Vidhi Specialty Food Ingredients’ first interim dividend for FY25 signals a strong start to the fiscal year. With consistent profitability, expanding operations, and a shareholder-first approach, the company continues to build investor trust and market credibility. As demand for food-grade colors grows globally, Vidhi Specialty is well-positioned to capitalize on emerging opportunities while maintaining its dividend discipline.
Sources: DividendScreen, Moneycontrol, Marketscreener, Dhan, Tickertape, Reuters, Vidhi Specialty Food Ingredients Official Announcements
