1 year ago
24 Companies Propose Dividends Despite FY25 Losses
Some companies are giving money to their shareholders as dividends, even though they didn't make a profit on their own.
24 companies did this, including EID Parry and Edelweiss Financial Services.
This is allowed as long as the company has money saved up from before.
Companies do this to show they are financially stable and make investors happy, helping maintain a positive outlook on the company's stock price.
24 listed companies proposed dividends for FY25 despite standalone losses.
EID Parry, Edelweiss Financial Services, and Majestic Auto are among the companies.
In 5 cases, companies also had consolidated losses.
The Companies Act allows dividends from current or prior year profits.
Experts cite financial stability and investor confidence as reasons.
- Who
- EID Parry, Edelweiss Financial Services, and Majestic Auto among others.
- What
- 24 listed companies proposed dividends for FY25 despite making losses on a standalone basis.
- Where
- Not explicitly mentioned
- When
- FY25
- Why
- To showcase financial stability and build investor confidence and to maintain a positive outlook on the company’s stock price.
Key facts
- Companies Proposing Dividends Despite Losses
- 24
- Companies with Consolidated Losses
- 5
- Companies with Consolidated Profits
- 9
- Legal Basis for Dividends
- Companies Act, 2013 Section 123
- Promoter Shareholding Range
- 32-87%
