Ambuja Cements to give Rs 17 per share dividend; sets record date as November 6
Expect the shares of cement major, Ambuja Cements Ltd, to open higher on Friday. The company announced that it will give a dividend of Rs 17 per share, which is higher by 7 per cent of its Thursday closing price.
The amount of dividends is quite significant as this has come on the back of the expectation of a weak business environment. The record date published by the company is November 6, 2020. If one takes exposure in this scrip, even today, the shares would be eligible for getting dividends. Generally, large size companies do not come with a heavy dividend.
The stock is also expected to take positive cues from the fact that the numbers for the quarter ended in September 2020 are also very strong. It reported robust EBITDA margin expansion of 710 bps to 24.3 per cent (EBITDA at Rs 681 crore), profit after tax at Rs 441 crore, up by 88 per cent YoY and net sales growth of 10 per cent. Another important parameter that stood in its favour was a reduction in operating expenses by Rs 326 PMT, which supported its performance at the operational level. The margins were further supported by an increase in the volume of 8 per cent and a decrease in the cost of 8 per cent.