Britannia shares advance after board approves highest interim dividend in three years

The board of Britannia Industries has approved an interim dividend of Rs 72 per share for the current financial year that ended on March 31. This is the highest dividend payout by the confectionary company in the past three years.

Previously, the company had approved a dividend of Rs 83 in August 2020. In June 2022, the company had paid a dividend of Rs 56.5 per share for financial year 2022 and also announced an interim dividend of Rs 62 per share in April 2021.

Record date for determining the eligibility of shareholders for payment of the interim dividend is April 13.

The interim dividend is subject to deduction/withholding of applicable taxes and will be paid within the stipulated timelines as prescribed under law, the company said in an exchange filing.

The dividend payout by the company comes it sold its 49 percent stake in its wholly-owned subsidiary Britannia Dairy Pvt. Ltd. as part of its joint venture agreement with French company Bel SA for around Rs 262 crore in November last year.

Aided by the stake sale in Britannia Dairy, the company had announced more than two-fold growth in its net profit for the December quarter to Rs 932.40 crore from Rs 369.18 crore in the year-ago quarter.

Britannia's management in February told CNBC-TV18 in an interaction that it aims to achieve 35 percent of its revenue from the non-biscuit portfolio over the next three years and has a long-term target of 50 percent.

Shares of Britannia are trading 0.4 percent higher at Rs 4,341. The stock has been flat this year.