All About Tata Motors' Upcoming Dividend

Tata Motors has announced a final dividend of ₹6 per share, with the ex-date set for June 4, 2025. If approved at the company's 80th Annual General Meeting (AGM) on June 20, 2025, the dividend will be paid to eligible shareholders on or before June 24, 2025.

This marks one of the highest dividend payouts by Tata Motors in the past decade, reflecting its financial performance and commitment to rewarding shareholders.

Tata Motors has declared dividends 20 times in the past 35 years, amounting to a total of 143.70 per share. The company's dividend yield has fluctuated significantly, with some years seeing high payouts relative to stock price movements.

Tata Motors has had a varied dividend history over the years. Here’s a snapshot of some key dividend payouts:

• 2025: ₹6.00 per share (Final) – Ex-date: June 4, 2025
• 2024: ₹3.00 per share (Final) & ₹3.00 per share (Special) – Ex-date: June 11, 2023
• 2023: ₹2.00 per share (Final) – Ex-date: July 28, 2023
• 2016: ₹0.20 per share (Final) – Ex-date: July 18, 2016
• Tata Motors did not declare dividends from 2017 to 2022.
• 2014: ₹2.00 per share (Final) – Ex-date: July 9, 2014
• 2011: ₹20.00 per share (Final) – Ex-date: July 19, 2011
• 2010: ₹15.00 per share (Final) – Ex-date: August 10, 2010
• 2008: ₹15.00 per share (Final) – Ex-date: June 16, 2008
• 2007: ₹15.00 per share (Final) – Ex-date: June 1, 2007
• 2006: ₹13.00 per share (Final) – Ex-date: June 23, 2006

Tata Motors' dividend history has been relatively modest compared to some of its competitors in the Indian auto sector.

While Tata Motors has steadily increased its dividend payouts, competitors like Maruti Suzuki and Bajaj Auto have historically provided higher absolute dividends and yields. However, Tata Motors' growth trajectory and strategic investments could influence future payouts.

Maruti Suzuki distributed 125 per share, with a dividend yield of 1.10%. Mahindra & Mahindra (M&M): Paid 21.10 per share, matching Tata Motors' 0.84% yield. Bajaj Auto: Offered ₹80 per share, boasting a dividend yield of 2.47%. TVS Motor Paid ₹8 per share, with a dividend yield of 0.36%.

Three Generations of Narayana Murthy Reap ₹2,330 Crore Infosys Dividend Windfall

Infosys' latest dividend payout has significantly benefited its promoters, with a total ₹2,330 crore distributed among them, reported Times of India. The company declared a ₹43 per share dividend, including an interim dividend of ₹21 per share for FY25.

Even the third generation of Infosys promoters has benefited, with Narayana Murthy's grandson Ekagrah Rohan Murty earning ₹6.5 crore in dividends.

Infosys continues its capital allocation policy, returning 85% of free cash flow over 5 years through dividends and buybacks.

Breakdown of Dividend Earnings:

• Nandan Nilekani: ₹175 crore (4 crore shares)
• NR Narayana Murthy: ₹65 crore (1.5 crore shares)
• Sudha Gopalakrishnan: ₹410 crore (9.5 crore shares)
• Rohan Murty: ₹261.5 crore (6 crore shares)
• Akshata Murty: ₹167 crore (3.8 crore shares)
• Ekagrah Rohan Murty (third generation): ₹6.5 crore (15 lakh shares)
• Nikita & Milan Shibulal Manchanda: ₹26.3 crore each (61 lakh shares each)
• Tanush Nilekani Chandra: ₹14 crore (33.5 lakh shares). 

Infosys promoters collectively hold 54.2 crore shares, representing 14.6% of total company shares. The dividend payout marks a 52% increase compared to the previous fiscal year, when promoters received ₹1,527 crore.

Infosys incurred a net cash outflow of ₹20,345 crore in FY25 due to dividend payments and buybacks.

This payout highlights the growing wealth of Infosys' third-generation heirs, with Narayana Murthy’s grandson, Ekagrah Rohan Murty, emerging as one of the youngest shareholders.

RBI To Pay Record-Breaking Dividend of ~ $35 Bn To Govt of India

The Reserve Bank of India (RBI) is expected to transfer a record-breaking dividend of up to ₹3 lakh crore ( approx. US $35 Billion) to the government for FY25, significantly surpassing last year's ₹2.11 lakh crore reported the Economic Times and other media outlets. This surge is attributed to robust earnings from dollar sales, rising gold prices, and gains from government securities.

The final amount will be determined in the RBI board meeting on May 23, following a review of the Economic Capital Framework (ECF).

This higher dividend could help manage the fiscal deficit and improve liquidity in the banking system. Economists suggest that the surplus transfer might range between ₹2.5 lakh crore to ₹3 lakh crore, depending on provisioning levels.

The reported 3 lakh crore in Dividends to the government for FY25, marks a nearly 50% increase from last year’s ₹2.11 lakh crore. This surge is driven by robust earnings from dollar sales, rising gold prices, and gains from government securities.

Key Factors Behind the Higher Dividend:

• Dollar Sales: The RBI sold $371.6 billion in FY25 to stabilize the rupee, significantly boosting its earnings.
• Gold Price Surge: Appreciation in gold prices contributed to valuation gains
• Government Securities: Market-to-market gains on RBI’s holdings of rupee securities added to the surplus.

Economic Capital Framework (ECF) Review: The RBI board met on May 15 to review the ECF, which determines risk provisioning and surplus distribution. The final dividend amount will be decided in the May 23 board meeting.

Impact on India’s Economy:

Fiscal Deficit Management: The surplus transfer will help the government reduce fiscal deficit and maintain liquidity in the banking system.

Bond Market Influence: A higher-than-expected dividend could impact bond yields, with markets already factoring in a ₹2.5 lakh crore payout.

Banking Liquidity: The dividend is expected to increase liquidity in the system, potentially reaching ₹6 lakh crore

Google's Parent Alphabet To Pay Its First-Ever Dividend of 20 Cents Per Share

Alphabet, Google's parent company, has made a significant move by issuing its first-ever dividend. Shareholders will receive 20 cents per share as part of this dividend payout. Additionally, Alphabet has authorized a $70 billion share repurchase program. This decision comes alongside better-than-expected first-quarter earnings, which has led to a 12% increase in Alphabet's shares.

With this, Alphabet now joins Meta (formerly Facebook) as one of the large-cap tech companies that have begun paying dividends.

While it's Alphabet's first-ever dividend, other tech companies have been paying dividends for some time. For instance, Microsoft has consistently paid dividends to its shareholders over the years. In terms of the dividend yield, which is the dividend amount relative to the stock price, Alphabet's initial dividend is relatively modest compared to some other tech companies. However, it's essential to consider the broader context, including the company's financial health, growth prospects, and investor expectations. Alphabet's decision to initiate a dividend signals confidence in its future performance and a commitment to returning value to shareholders.

Notably, Alphabet Inc. (GOOGL) reported robust financial results for the first quarter of 2024. The company's Q1 2024 revenue reached $80.5 billion, representing a 15% increase compared to the same period in 2023. This growth reflects strong performances across major segments, particularly in Search, YouTube, and Google Cloud.

Alphabet achieved a net income of $23.66 billion, significantly exceeding the estimated $19.1 billion. This impressive performance underscores Alphabet's financial strength and operational efficiency. The company delivered an Earnings Per Share (EPS) of $1.89, comfortably above the estimated $1.51. This outperformance reflects the company's ability to generate value for shareholders.

Additionally, Alphabet also authorized an additional $70 billion in Class A and Class C share repurchases, highlighting confidence in its financial stability and future growth.

Under the leadership of CEO Sundar Pichai, Alphabet continues to advance its initiatives in the Al space, consolidating Al model development teams to accelerate progress.

This strategic move aims to fortify Alphabet's leadership in Al innovation and maintain its competitive edge in the rapidly evolving tech landscape.

Tata Elxsi Delivers 13% Revenue Growth in FY24; Declares 700% Dividend (Rs. 70/Share)

Declares 700% dividend (Rs. 70 per share)

Full-year PBT crosses Rs. 1,000 Cr for the first time

Growth led by Transportation at 24.6% year-on-year

Tata Elxsi (BSE: 500408 | NSE: TATAELXSI), amongst the world’s leading providers of design led technology services, announced its fourth quarter results for the period ending 31st March 2024.

Highlights of the Year Ended 31st March 2024

• Revenues from operations at Rs. 3,552.1 Cr, + 13.0% YoY
• EBITDA Margin at 29.5%, PBT margin at 28.5%
• Profit before Tax (PBT) grows 11.9% to Rs. 1048.7 Cr
• Software Development and Services (SDS) grew by 9.3% YoY, in constant currency.
• System Integration & Support (SIS) grew by 18.6% YoY, in constant currency.

Highlights of the Quarter Ended March 31, 2024

• Revenues from operations at Rs. 905.9 Cr, - 0.9% QoQ, + 8.1% YoY
• Operating revenue growth -0.6% QoQ and +7.2% YoY on constant currency basis
• EBITDA Margin at 28.8%; PBT at 27.9%
• Profit Before Tax (PBT) at Rs. 262.4 Cr, +4.9% YoY

Industry Highlights for the Year Ended March 31, 2024

• Transportation continues to grow strongly, registering a revenue growth of 24.6% YoY, supported by deal wins in Electric, Software Defined Vehicles and OEMs
• Healthcare delivered sustained growth of 10.8% YoY
• Media and Communications grew 0.2% YoY in a challenging business environment for this industry

Dividend related announcement:

The Board of Directors have recommended a final dividend of 700% (Rs. 70 per equity share of par value of Rs. 10 each) for the financial year ending 31st March 2024, subject to approval by the shareholders of the company at the Annual General Meeting.

Mr. Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company’s performance in the financial year 2023-24, said:

“Financial year 2024 has been a year of consistent operational performance with a revenue growth of 13% despite global macroeconomic uncertainties, and volatility in the media and communications industry over the last few quarters. We have done well to maintain industry leading EBITDA margin at 29.5% for the year, even while we continued to invest in expanding our talent base through all four quarters, with a net addition of 1535 Elxsians through the year.

We had laid down a strategy of integrating our design business deeply with our key industry verticals, complementing our software and digital business with a design-led proposition. This is now complete, with a seamless end-to-end proposition from ideation to market introduction. This is enhancing our competitive differentiation, providing early visibility into customer product roadmaps, and creating larger downstream development deals. Starting with this quarter, we are reporting this integrated view of design-digital in all three verticals, under the Software Development and Services (SDS) segment.

During the financial year, our transportation business grew strongly at 24.6% YoY, and now accounts for 49.9% of our overall SDS revenues. OEMs now constitute over 56% of the transportation business, and we are now embedded into the SDV programs of 5 global OEMs. I am especially delighted with the SDV program with a global OEM we won this quarter, and the German Design Award 2024 for our work on automotive HMI, which demonstrates the world-class design-led proposition we offer to customers.

The Healthcare & Lifesciences business registered a growth of 10.8% YoY. We have established a strong foundation for continued growth, with the addition of 5 marquee customer logos in the year and expanded capabilities and platforms in new growth areas such as digital therapeutics and connected health. The Offshore Development Centre for Innovation and R&D we announced in March 2024 for Dräger Medical, the German-headquartered leader in critical care and safety equipment, demonstrates the relevance of our technology and design expertise and deep domain capabilities for next-generation healthcare.

Our Media & Communications business grew 0.2% during the financial year. While this quarter saw a one-off impact of a deal ramp-down with a customer due to a merger, we have done well through the year to protect business, add marquee customers and increase wallet share with key customers. Even while the industry continues to experience significant reductions in discretionary spend and R&D budgets, we are placed well with our integrated design-digital offerings and investments in platforms for the future.

Our Systems Integration and Support (SIS) Business is pivoting to value-added services, innovation-led projects such as experience centres, and supporting downstream deployment and run management for our products and platforms. While Q4 revenues and growth was impacted by hardware shipment delays due to the Red Sea shipping crisis, it grew creditably by 19.0% in FY24, getting to a near 100 Crores business in this financial year.

We are transforming our customer base across industries, with a significant shift towards OEMs in the automotive industry, and operators in the media and telecom industry, while we continue to invest in deepening our key customer relationships. This is reflected in the strong growth in our Top 10 and Top 25 customers across the company.

We are continuing to invest ahead in building our talent pipeline and are expanding our presence across locations in India and overseas. Our employee retention continues to be the best amongst our peers and the industry at large.

Even as we step into the new financial year, we are pleased to announce two new members to the board. Mr. Soumitra Bhattacharya has had an illustrious corporate career, especially in the automotive industry with over 28 years with the Bosch group. He serves as Chairman of Bosch Limited, and is the Director for IFQM - an industry-led initiative focused on Quality, Excellence, and Innovation. Ms. Ashu Suyash is a highly respected leader and served as MD and CEO of CRISIL, among leadership roles across many leading institutions. She has recently set up Colossa Ventures, an investment ecosystem for women entrepreneurs, and is an Independent Director on a few Boards including Hindustan Unilever. We look forward to leveraging the rich experience and network, industry knowledge and strategic inputs from our new directors.

I am pleased with our overall performance and resilience in revenues, margins, and customer additions through the year, in a volatile macroeconomic environment.

We are entering the new financial year with a commitment for growth, and the continued confidence in our differentiated design-led engineering capabilities. This is backed by strategic relationships we have built over years with key customers, the qualitative change in revenues towards OEMs and SDV programs, entries into new operators and marquee healthcare logos, investments in strategic technology areas and AI, and the strong deal pipeline we carry into the new financial year.”