World’s largest miner Coal India Ltd is expected to reward its shareholders with an additional final dividend of 20-25 per cent in its board meeting on June 14 that will declare fourth-quarter financial results, sources said.
The miner though failed to achieve targeted production and offtake targets for FY21 but it has surpassed the revised capital expenditure target of ₹13,000 crore.
“The board will try declaring another round of dividend but it is expected to be less than two interim dividends of ₹7.5 and ₹5 on each share of ₹10 each,” the sources told PTI.
The total interim dividend for FY21 is ₹12.5 per share and the final dividend could be ₹2-2.5 per share to make the final total dividend not less than ₹15 per share, sources indicated.
The government will be the largest beneficiary of the dividend as its shareholding stands at 66.13 per cent.
The fourth-quarter numbers were expected to remain weak according to analysts estimates but stock market participants remained bullish and the stock rose 6.24 per cent during the week.
Speaking about capex achievement the official said, “Initially the target was ₹10,000 crore but with the COVID- 19 pandemic induced slowdown in the economy the government asked to raise to support the economy. We raised the capex target to ₹13,000 crore and we have surpassed it.”
The capital expenditure for FY21 was at ₹13,115 crore, a 109 per cent rise compared to the previous year’s capex outgo of ₹6,270 crore.
Procurement of heavy earth moving machinery at ₹3,453 crore topped the list of capex heads for FY21, followed by land at ₹2,470 crore. Capex in joint ventures, in proportion to CIL’s shareholding, like Talcher Fertilizers Ltd and Hindustan Urvarak & Rasayan Ltd accounted for ₹2,194 crore.
Spending on coal evacuation infrastructure like coal handling plants, silos and constructing sidings amounted for ₹1,398 crore while construction of rail corridors and railway lines amounted to ₹1,166 crore.
This story has been published from a wire agency feed without modifications to the text.
Never miss a story! Stay connected and informed with Mint.
our App Now!!