The share price of RITES rose nearly 3% on Monday after the company announced an interim dividend of Rs 6 per share and said it acquired stake in IRSDC.
Following the announcement, shares price of RITES touched an intraday high of Rs 293.90 on BSE, climbing 2.92% against the previous closing value of Rs 285.55. A combination of 5.35 lakh shares changed hands on BSE and NSE counters today. RITES shares were trading higher than 5, 20, 50, 100 and 200-day moving averages.
The rise in share price was in line with the 'Railways' sector that has gained 2.88% today. The stock has gained 2.84 value in one week, 3.66% in one month and 32% year-to-date.
The company's board at its meeting held on December 27 declared an interim dividend of Rs 6 per share of Rs 10 each (at the rate of 60% of paid-up capital) and fixed January 10, 2020, as the record date for the purpose of payment of dividend. For the FY20 so far, the company's dividend payout ratio stands at 46% (on 6 month PAT), as per company's filing.
Commenting on the dividend announcement, Rajeev Mehrotra, company's Chairman and Managing Director said "RITES has demonstrated its capacity to execute across segments and simultaneously able to protect its margins in the H1 of FY20. We had a strong Hl FY20, where we have seen our standalone revenue going up by 71% and profit-after-tax up by 72% on YoY basis. This growth has enabled us to announce a healthy interim dividend".
The company board also approved an investment of Rs 48 crore for acquiring 24% stake in Indian Railways Station Development Corporation Ltd (IRSDC) at face value of Rs 10 per share. The company said the investment will provide RITES with an opportunity of growth in the emerging field of development of railway stations.