BSE Ltd : The dividend does not disappoint 💸

BSE Ltd has declared dividend of Rs. 17/- per share for FY 19-20 subject to the approval at the AGM. The dividend payout ratio is at 95% in the midst of the COVID 19 pandemic. The money in the pocket is happy news for the shareholders👍. The company has so far maintained a payout ratio of above 90% on it’s standalone net profits. Last year, in FY 18-19, the dividend per share was Rs. 30/- and a payout ratio of 97%.

BSE Ltd CMP is Rs. 394.50/-

Dividend history of BSE Ltd, Source: Company website
Dividend history of BSE Ltd, Source: Company website

“The total payout would be Rs 77.87 cr representing 95% of the profits excluding gain on part- equity stake sale of Central Depository Services (India) Limited.” said the company’s media release. BSE Ltd sold 4% stake in its depository associate CDSL in Q3 and the gain was Rs. 32 cr. BSE now holds 20% stake in CDSL

 “The company will definitely declare a dividend, the question is how much? I would take a guess at somewhere between Rs. 15 – 20 per share🤞.” …the last post on BSE Ltd ended with this line. The link is here Dividend Candidate(#2): BSE Ltd 🤑

Anything else interesting besides the stellar dividend? Yes, we have to look at the revenue from the BSE StAR MF Platform.  

Income earned in this segment has contributed to 12% of the revenue from operations for the year ended March 31, 2020 as compared to 8% of the revenue from operations for the year ended March 31, 2019.”  company’s media release. This is again good news !!

Revenue from the BSE StAR MF Platform, Source: Company website
Revenue from the BSE StAR MF Platform, Source: Company website

Considering that it is a pandemic year and it ended in profits is good news, though the quarter was in a loss. The stake sale in CDSL was an income booster; it’s a exceptional item, but still… Happy with the dividend payout and the performance of the BSE StAR platform seems to be powering ahead.

Till next post, take care !!

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