Dividend Stock: This commercial vehicle manufacturer will pay ₹4.95 per share to shareholders

Ashok Leyland has declared an interim dividend of ₹4.95 per share for the financial year ending 2023-24, the company said in an exchange filing.

The record date for determining the members eligible to receive the said dividend has been fixed on Wednesday, April 3. The said interim dividend would be paid on or before April 23, 2024.

Shares of Ashok Leyland will likely trade ex-dividend a day or two days before the record date. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. An ex-dividend date also dictates which shareholders are eligible to receive the dividend payment.

Ashok Leyland had declared a final dividend of ₹2.6 in July last year, following a ₹1 payout in July 2022.

On the earnings front, Ashok Leyland’s net profit jumped 60.5% to ₹580 crore in Q3FY24 on a year-on-year basis, beating Street estimates riding on strong demand for its products both in the MHCV and LCV segments.

The Indian flagship company of the Hinduja Group recorded revenues of ₹9,273 crores in the third quarter of the current financial year, registering a growth of 2.7%.

Ashok Leyland reported EBITDA of ₹1,114 crore (12.0%) in Q3FY24, registering double-digit percentage EBITDA in all three quarters of the fiscal year.

In an interaction with CNBC-TV18, Ashok Leyland’s MD and CEO Shenu Agarwal said the company expects the financial year 2024 to be a “record-breaking” year, driven by the government’s focus on infrastructure and a shift away from the industry’s traditional cyclicality.

Agarwal had expressed his optimism about the interim budget and the government’s infrastructure push. “The last 3-4 years have been fantastic for the industry, and the government’s infra focus has been a major contributor,” he added.

Ashok Leyland shares have tumbled over 10% so far this year, while it has risen 24% in the last one year.