New Delhi: RailTel Corporation of India Limited, a government-owned railway sector company, has made a significant announcement for its investors. The company has approved a second interim dividend for the fiscal year 2024-25. RailTel's Board of Directors declared a dividend of 10%, or ₹1 per share, for its shareholders.
Record Date for Dividend
In an exchange filing, the company informed that RailTel's interim dividend will be paid based on the record date of April 2nd, 2025. Investors holding the company's shares on this date will be eligible for the dividend. The dividend payment will be completed by April 9th, 2025.
RailTel's Dividend History
RailTel has declared dividends 9 times to date. Over the past year, the company has paid a total dividend of ₹2.85 per share. With the current share price at ₹289.75, the dividend yield stands at 0.98%.
Share Price Decline Continues
Despite the dividend announcement, RailTel's share price experienced a decline. On Wednesday, the company's shares closed 1.59% lower at ₹288. The stock has fallen 11% in the past month and over 38% in the past six months. In the past year, the Navratna PSU company's shares have delivered over 25% negative returns.
RailTel's December Quarter Results
In the third quarter of the current fiscal year, RailTel reported a 5% net profit growth. The company's profit stood at ₹65 crore, compared to ₹62 crore in the same quarter of the previous year. Operating revenue increased by 15% to ₹768 crore during this period, up from ₹668 crore in the December 2023 quarter.
The company's other income for this quarter amounted to ₹15 crore, bringing the total income to ₹782 crore. Other income in the previous quarter was ₹19 crore, while in the same quarter of the previous year, it was ₹6.5 crore.
How to Receive the Dividend?
RailTel's interim dividend will be directly transferred to the bank accounts of eligible shareholders. Investors are advised to purchase RailTel shares before April 2nd, 2025, to benefit from this dividend.
