Cheviot Co zooms 20% as firm announces special dividend of Rs 175 per share

The company has fixed July 16, 2021, as the record date fixed for the purpose of dividend

Shares of Cheviot Company were locked in the upper circuit of 20 per cent at Rs 960.60 on the BSE in Monday's session after its board recommended a special dividend of Rs 175 per equity share for the year ended March 31, 2021 (FY21), subject to the approval of the members at the ensuing annual general meeting (AGM) of the company. The company has fixed July 16, 2021, as the record date for the purpose of dividend.

The stock of the jute and jute products company was trading at its highest level since August 2018. Till 01:33 pm, around 9,283 equity shares had changed hands on the BSE and there were pending buy orders for 119,055 shares, the exchange data shows.

Cheviot Company reported an over seven-fold jumped in its net profit at Rs 25.68 crore for the quarter ended March 2021 (Q4FY21) as against Rs 3.50 crore in Q4FY20. Revenue from operations grew 37 per cent year-on-year (YoY) to Rs 156.88 crore from Rs 114.76 crore in the year-ago quarter.

Meanwhile, the rating agency Crisil, as part of its annual rating surveillance exercise, reaffirmed the long-term rating at A+/Stable and short term rating as A1+ on various borrowings of the company from banks and financial institutions.

The ratings continue to reflect strong business and financial risk profiles. These strengths are partially offset by exposure to risks related to the regulated nature of the jute industry and the easy availability of cheaper substitutes, Crisil said in rating rationale.

"There has been a disruption in the supply chain in India, and sales volume may be affected adversely due to the global decline in demand if the pandemic prolongs further. As these measures are imposed at a broader level and across sectors, they are expected to impact the business risk profile of the company. The ability to revert back to operational stability and any relief measures given by the government will be key monitorables. Any further disruption in operations, however, will be supported by the healthy financial risk profile, particularly liquidity," the rating agency said.