1,327% Dividend: Hyundai Motor Declares Dividend Worth Rs 10,782 Crore For FY24 Ahead Of IPO

Hyundai Motor India Ltd (HMIL) has joined the club of Indian companies that have distributed dividends exceeding Rs 10,000 crore in the fiscal year 2024. As the company gears up for its highly anticipated initial public offering (IPO), Hyundai declared a special dividend of Rs 13,270 per share, translating to a 1,327% dividend payout. This brings the total dividend disbursement to Rs 10,782.42 crore in FY24. In FY23, Hyundai distributed a total dividend of Rs 4,653.42 crore, while in FY22, the dividend payout stood at Rs 1,493.45 crore.

With this latest announcement, Hyundai Motor India has become the seventh Indian company to declare dividends in excess of Rs 10,000 crore for FY24. Leading the pack is Tata Consultancy Services (TCS), with a payout of Rs 16,290 crore, followed by HCL Technologies (Rs 14,080 crore) and Coal India (Rs 12,633 crore). Other notable names in the list include ONGC Ltd (Rs 12,265 crore), State Bank of India (Rs 12,226 crore), and Vedanta Ltd (Rs 10,959 crore).

Despite the generous dividend distribution, Hyundai's cash and bank balances have taken a hit, falling to Rs 9,017.35 crore in FY24, down from Rs 17,741.15 crore a year earlier. In its Red Herring Prospectus (RHP), Hyundai acknowledged the impact of this significant payout on its financial reserves.

"As a result, our ability to utilize our internal accruals and cash and bank balances has been reduced," the company stated. "Any resultant insufficiency in our internal accruals and cash and bank balance may require us to borrow money to meet our growth requirements and incur borrowing costs, which may adversely impact our profitability, financial ratios, and results of operations."

Hyundai Motor India's dividend announcement comes just ahead of its $3-billion IPO, which is set to be the largest in Indian history. The IPO will open for subscriptions on October 14 for institutional investors, followed by retail investors from October 15 to 17. The company has set a price band of Rs 1,865 to Rs 1,960 per share.

Hyundai, which has been India's second-largest passenger vehicle manufacturer since 2009, is expected to attract substantial attention from both domestic and international investors. The company's reputation for innovation, quality, and cutting-edge technology, combined with its diverse lineup of 13 models, including sedans, hatchbacks, SUVs, and electric vehicles.

For the quarter ending June 2024, Hyundai Motor India reported a revenue of Rs 17,344 crore, up from Rs 16,624 crore in the same period last year. The domestic market accounted for 76% of the total revenue, while exports contributed 24%. Hyundai's net profit for the quarter stood at Rs 1,489.65 crore, a growth from Rs 1,329.19 crore in the previous year.