Tata Steel Ltd. said it may review its dividend policy very soon, even though the company has recommended its highest ever payout.
The company’s current capital allocation policy continues to focus on deleveraging, expanding and maximizing shareholder returns, in that particular order, the steelmaker’s chief executive and chief financial officer, Koushik Chatterjee, said in a statement. interview with Bloomberg Quint.
The company, while announcing its fourth quarter results, recommended a dividend of Rs 51 per fully paid share, its biggest payout at least since 2001. It also announced a payout of Rs 12.75 per partially paid share, in more than a 10:1 action. Split.
Tata Steel would like to maximize dividend yields for shareholders as one of the capital allocation levers, as this would push it to achieve higher profitability, Chatterjee said. The company distributed 19 to 20 percent of its profits this time as dividends, which is in line with its dividend distribution policy, he said.
The company aims to pay out as a dividend up to 50% of after-tax profit, subject to applicable rules and regulations. It has planned an investment of Rs 12,000 crore for FY23, compared to Rs 10,500 crore spent in the previous financial year.