HUDCO to declare second interim dividend for FY25 today; shares edge lower

The Board of Directors of Housing & Urban Development Corporation (HUDCO) is set to meet today, March 10, to consider the declaration of a second interim dividend for the financial year 2024-25.

As per the company’s press release dated March 3, the record date for determining shareholder eligibility for the second interim dividend has been set for Friday, March 14, 2025, subject to board approval. The record date serves as a cut-off for shareholders to qualify for corporate actions, including dividends and stock splits. Given India’s T+1 settlement cycle, investors must purchase shares at least one day before the ex-date to be recognized as shareholders on the record date.

Over the past 12 months, HUDCO has declared an equity dividend totaling ₹4.15 per share. Earlier this year, the company announced an interim dividend of ₹2.05 per share for FY25, with January 30 set as the record date for eligibility.

Financial Performance

In terms of financial performance, HUDCO reported a 42 percent year-on-year rise in net profit to ₹735 crore in Q3FY25, compared to ₹519.23 crore in the corresponding quarter of the previous year. Revenue also witnessed a robust 37 percent increase, reaching ₹2,760 crore, up from ₹2,013 crore in Q3FY24.

Market Reaction

HUDCO’s stock declined by as much as 1 percent on Monday, reaching a day’s low of ₹180.30. The stock has fallen 49 percent from its peak of ₹353.95, recorded in July 2024. However, it has recovered 18 percent from its 52-week low of ₹152.65, touched in March 2024.

On a one-year basis, the PSU stock has declined 10 percent. Despite this, it has gained over 10 percent in March so far, bouncing back after three consecutive months of losses. The stock fell 28 percent in February, 2 percent in January, and 1.6 percent in December.

Other Strategic Developments

HUDCO has revised its borrowing plan for FY25, increasing it from ₹40,000 crore to ₹55,000 crore, citing a "quantum jump in business" as the primary reason for the decision.

Additionally, the company recently announced its planned exit from Ind Bank Housing Limited (IBHL). However, no specific reason was mentioned in the exchange filing regarding the exit strategy.

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