May 10, 2023
New Delhi, India
Overview
Investor enthusiasm surged as Abbott India reported impressive Q4 results, propelling its shares to rise by 5%. The company’s robust performance in the January-March quarter, coupled with its highest-ever dividend payout, garnered significant investor attention.
Key Highlights
- Abbott India’s board approved a dividend of Rs 410 per share for FY24, reflecting the company’s commitment to rewarding shareholders. Notably, the dividend per share (DPS) has consistently outpaced profit growth over the last five years, growing at a compound annual growth rate (CAGR) of 45% compared to a 22% profit growth between FY20 and FY24.
- The pharmaceutical company’s Q4 net profit surged by 24.1% to Rs 287.1 crore compared to the previous year. Revenue for the quarter rose by 7.1% to Rs 1,438.6 crore, with the EBITDA margin expanding to 22.9% from 20.9% in the year-ago period.
Market Reaction
- Abbott India’s strong Q4 performance triggered a positive market response, with its shares rising as much as 5%. The surge came following the announcement of robust earnings and the highest-ever dividend payout.
- The company’s stock hit an intraday high of Rs 26,593.75 apiece, reflecting investor confidence in Abbott India’s growth trajectory and dividend policy.
Future Outlook
- Abbott India’s consistent growth in earnings and dividend payout underscores its strong position in the pharmaceutical industry. With a focus on providing medications across various therapeutic areas, the company remains poised for continued success.
- The final dividend recommendation of Rs 410 per share for FY24, subject to shareholder approval, further highlights Abbott India’s commitment to delivering value to its investors.
At the time of writing this article Abbott India’s shares were trading at Ts. 26477.20 +3.58%.
Conclusion
Abbott India’s shares surged on the back of robust Q4 results and a record dividend payout, reflecting investor confidence in the company’s performance and future prospects. The company’s commitment to shareholder value, coupled with its strong financial performance, positions it as a key player in the pharmaceutical sector.
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