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.

The income earned in the StAR MF segment increased by 54% to Rs 44.74 crore for the year ended March 31, 2020 from Rs 29.03 crore for the year ended March 31, 2019. 

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

And in other news, looking at the Consolidated Profit and Loss statement 

  • Total income for FY 19-20 declined 6% to Rs. 630/- cr, from Rs. 668.7/- cr in FY 18-19
  • Net Profit for for FY 19-20 declined 39% to Rs. 120.6/- cr from Rs. 199.3/- cr in FY 18-19.
  • Q4 FY 19-20 total income dropped 9% to Rs. 155.8/- cr from Rs 171.6/- cr in Q4 FY 18-19
  • Q4 FY 19-20 reported a net loss of Rs. 1.9/- cr from Rs. 51.9/- cr in Q4 FY18-19

    Consolidated P&L of BSE Ltd, Source: Company website
    Consolidated P&L of BSE Ltd, 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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