Ruchi Soya Stock Up Over 2% On Bumper Dividend Announcement

Shares of edible oil major Ruchi Soya Industries Ltd closed on Friday at Rs 1,120.15, up over 2 per cent for the day, as the company reported a dividend of Rs 5 per share, with a Rs 2 face value.

Ruchi Soya's stock ended 2.35 per cent higher on Friday at Rs 1120.15 per share, taking its market capitalisation to Rs 40,548.85 crore.

While the company reported a 25 per cent decline in its consolidated net profit, mainly on high taxes, the board declared a 250 per cent dividend for 2021-22.

The announcement of a bumper dividend at Rs 5 per share - on the face value of Rs 2 per share - is considered the highest amongst its peers. The previous highest divided by Ruchi Soya was 25 per cent in 2008.

The company's total income rose to Rs 6,676.19 crore in the fourth quarter from Rs 4,859.5 crore in the corresponding period of the preceding fiscal.

Net profit increased to Rs 806.3 crore in 2021-22 from Rs 680.77 crore a year ago.

Total income surged to Rs 24,284.38 crore during the last fiscal from Rs 16,382.97 crore in 2020-21. Its tax expenses stood at about Rs 61 crore in the quarter. The firm had received a tax credit of Rs 166 crore in the year-ago period.

Ruchi Soya was acquired by Baba Ramdev led-Patanjali group in 2019 for Rs 4,350 crore through an insolvency process.

Recently, Patanjali Ayurved announced the sale of its retail food business to group firm Ruchi Soya Industries Ltd for Rs 690 crore as part of its strategy to focus on non-food, traditional medicine and wellness business.

Ruchi Soya Industries Ltd has recently raised Rs 4,300 crore through a follow-on public offer (FPO).

The promoters' stake reduced to 80.82 per cent, and the public shareholding stood at 19.18 per cent. The company has utilised the proceeds of the FPO to repay 100 per cent of its bank and long term borrowings.

Ruchi Soya sells its products under brands like Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight. It has one of India's largest oil palm plantations companies, with over 56,000 hectares under oil palm cultivation, engaging with more than 39,000 farmers across nine states in India.

The company is also engaged in the renewable wind energy business, out of which 19 per cent is used for captive consumption.