Railway company RITES stock closes 6% lower after issuing bonus shares and dividend
Despite announcing bonus share and dividend alongwith June quarter results, shares of RITES were trading 1.9 per cent lower at Rs 740.85. However, the stock closed 5.6 per cent lower at Rs 716.1 each on BSE today.
The board of directors of the railway company RITES has approved a bonus issue of shares, according to a stock market disclosure on Wednesday, July 31.
The company has also declared its first interim dividend for the financial year 2024-25.
Despite announcing bonus share and dividend alongwith June quarter results, shares of RITES were trading 1.9 per cent lower at Rs 740.85. However, the stock closed 5.6 per cent lower at Rs 716.1 each on BSE today.
RITES bonus share
RITES will issue the bonus share to its shareholders in the ratio of 1:1. This means, that each shareholder will get one bonus share for every share held by them.
"The issuance of bonus shares to the shareholders of the company in the ratio of 1:1, i.e. 1 (One) bonus equity share of Rs 10/- each fully paid up for every 1 (One) existing equity shares of Rs 10/- each fully paid- up, to the eligible members by capitalising a sum not exceeding Rs. 240,30,18,870.00 out of the sum standing to the credit of 'Capital Redemption Reserve and Free Reserves, subject to the approval of shareholders, " the company said in an exchange filing.
RITES announces Rs 2.5/share dividend
The company has also announced its first interim dividend of Rs 2.5 per share to its shareholders.
What is the record date of the dividend?
The record date for the first interim dividend is August 8, 2024.
A look at Q1FY25 earnings
The railway company reported a 24.4 per cent fall in its net profit to Rs 90.4 crore in the first quarter of financial year 2024-25 that ended on June 30, 2024. Its last year's profit was Rs 119,6 crore during the same quarter.
The company's EBITDA (earnings before interest, tax, depreciation, and amortisation) for the quarter also fell by 34.5 per cent from last year to Rs 105.8 crore.
Talking about RITES' different business segments, export sales declined by 87 per cent YoY to Rs 4.96 crore. Its power generation revenue was also 23.1 per cent down to Rs 5 crore. Domestic consultancy business revenue also decreased by 5.3 per cent in the June quarter.
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