Asian Paints declares Rs 5.15 interim dividend, sets record date

Asian Paints today announced an interim dividend of ₹5.15 per share for the financial year ending 2024. The company has fixed Friday, November 3, as the record date for determining the members entitled to receive the interim dividend.

The said interim dividend will be paid to the shareholders on or after Monday, November 13, 2023, the Mumbai-headquartered paint company said in a filing.

"Payment of interim dividend of ₹5.15 per equity share of the face value of Re 1 each for the financial year ending 31st March 2024. The record date for the purpose of determining the entitlement of the shareholders for interim dividend has been fixed as Friday, 3rd November 2023, and the dividend will be paid to the shareholders on or after Monday, 13th November 2023," it said.

Shares of Asian Paints will likely trade ex-dividend on the day or a day 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.

Asian Paints has declared 50 dividends since October 16, 2000. In the past 12 months, Asian Paints has declared an equity dividend amounting to ₹25.65 per share, according to data from Trendlyne.

At the current share price of ₹3,007.65, this results in a dividend yield of 0.85%.

In the September quarter, the paint manufacturing company reported volume growth of 6%, lower than the CNBC-TV18 poll of between 7% and 9%. Sales in value terms remained flat.

The domestic coatings business, decorative and industrial combined, registered a subdued 1.1% revenue growth during the quarter.

"Erratic monsoon impacted market sentiment potentially leading to a deferment of sales to October, given the late Diwali this year," the company said.

Asian Paints posted revenue of ₹8,479 crore, which was lower than the CNBC-TV18 poll projection of ₹8,900 crore. Operating profit or EBITDA of ₹1,717 crore was also lower than the ₹1,800 crore projection in the CNBC-TV18 poll.

Shares of Asian Paints are down to the day's low at ₹2,955, trading 3% lower following the earnings announcement.