Tata Elxsi Shares Dips As Board Fixes Record Date For 606% Final Dividend

Tata Elxsi shares started Tuesday’s session at Rs 7700.10 apiece and gear a downside level to Rs 7675 logging a dip of 0.25% during the morning deals.After the Board of Directors declared record date for final dividend of 606%, the stock started the day on a negative note.
“Pursuant to Regulation 42 of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Members of the Company will remain closed from Friday, June 23, 2023 to Tuesday, July 04, 2023 (both days inclusive) for the purpose of Thirty Fourth Annual General Meeting of the Company and to determine the Members eligible to receive dividend, as recommended by the Board,” said Tata Elxsi in a stock exchange filing.
The Board of Directors of the company have recommended a final dividend of Rs.60.60/- (606%) per equity share on face value of Rs.10/- each, for the approval of shareholders at the 34th AGM.In order to determine the eligibility of the shareholders for the purpose of dividend, Tata Elxsi said “dividends will be payable to those shareholders whose names appear in the list of beneficial owners as at the closure of business hours on Thursday, June 22, 2023,” in a stock exchange filing.
For the fourth quarter of the fiscal year that ended in March (Q4FY23), Tata Elxsi reported an increase in net profit of 26% year on year to Rs 201.5 crore.In the same period last year, the Tata group company earned a profit of Rs 160.01 crore.In Q4FY23, the company’s revenue from operations increased by 23% year on year to Rs 838 crore from Rs 681.7 crore in Q4FY22.The IT company’s total income for Q4FY23 increased year on year by 23.4% to Rs 863.6 crore from Rs 699.8 crore in the same quarter of FY22.EBITDA for the company was Rs 249.5 crore in Q4 FY23, increasing 12.8% YoY from Rs 221.2 crore in the same quarter the previous year.
Commenting on the outlook of the stock, A R Ramachandran, Co-founder & Trainer-Tips2trades said “Tata Elxsi is overbought and looks bearish on the Daily charts with strong resistance at 7777.Investors should book profits at current levels or keep a stop loss of Daily support of 7456.”