38% increase in dividend payments by leading companies

Due to the adverse effects of the Corona epidemic, it was the turn of the country to suffer heavily on the economic front in the last financial year. With the massive rise in unemployment, many other adversities arose. So on the other hand many industries were also put in trouble during this time. However, his balance sheet has strengthened as the corporate sector continues to thrive.

During the financial year 2020-21, the top 15 companies listed on the National Stock Exchange (NSE) paid dividends of Rs. 21,000 crore was paid. Which in its previous financial year was Rs. 200 crore was paid. Thus, the dividend payable increased by 3% during this period. Favorable conditions were created due to the increase in revenue and cash flow of companies due to low interest rates.

According to available dividend data, 108 out of 12 companies paid higher dividends than the previous year. Of this, state-owned oil companies Bharat Petroleum spent Rs. 1,412 crore was paid as dividend. Which was Rs. 3 crore were paid. Indian Oil had raised Rs. 116 crore was paid as dividend. Which in its previous year was Rs. 2001 crore.

If we look at private companies, Hindustan Uni Lever spent Rs. 316 crore was paid as dividend. Which in its previous year was Rs. 200 crore. Infosys has raised Rs. 3 crore was paid as dividend. Against it in 2020-21 Rs. 11,507 crore was paid as dividend. Speaking of the banking sector, the country's largest bank, State Bank of India, did not pay dividends in 2017-20. However, in 2020-21, it was Rs. 20 crore was paid. Apart from this, relatively high dividends were also paid by other banks.

According to analysts, high dividends were paid by government companies in the financial year 2020-21. Apart from oil companies, these include companies like SAIL, Coal India, NTPC. Many private sector companies also paid higher dividends than in the previous financial year.

Due to the adverse effects of the epidemic during the stipulated time, large scale cost cutting was adopted by the companies. In addition to all other types of expenses, control over working capital requirements was also put in place. On the other hand, companies' balance sheets saw a significant improvement due to lower interest rates. As a result, they were able to pay a high dividend.