Cheviot Company hits the roof on dividend bounty; strong Q4 outcome

Cheviot Company hit an upper circuit of 20% at Rs 960.60 after the company's board on Friday (15 May) recommended special dividend of Rs 175 per share for the year ended 31 March 2021.

The record date for the special dividend is set on 16 July 2021.

At the closing price of Rs 800.50 recorded on Friday, the stock offers a dividend yield of 21.86%.

Meanwhile, Cheviot Company reported a net profit of Rs 25.68 crore in Q4 FY21 as against a net profit of Rs 3.50 crore in Q4 FY20. Net sales during the quarter increased by 36.7% year-on-year (YoY) to Rs 156.88 crore in Q4 FY21.

The company posted a pre-tax profit of Rs 32.77 crore in the fourth quarter as compared with a pre-tax profit of Rs 6.57 crore recorded in the same period last year.

The jute goods maker reported 57.4% jump in net profit to Rs 75.72 crore on 13.6% drop in net sales to Rs 395.76 crore in the year ended 31 March 2021 compared with the year ended 31 March 2020. Total expenditure declined 14.4% to Rs 343.34 crore in FY21 over FY20.

Separately, Cheviot Company informed that the credit ratings agency CRISIL, as part of annual rating surveillance exercise, has reaffirmed the long-term rating at 'A+/Stable' and short-term rating as 'A1+' on various borrowings of the company from banks and financial institution.

Cheviot Company is the flagship company of Group Cheviot. It owns Cheviot Jute Mills in West Bengal. The company manufactures jute products and jute fabrics with flexibility to cater to both domestic and international market. The company is renowned for manufacturing superior quality technical jute fabrics and fully customized jute shopping bags for export market at the export oriented unit situated at Falta Special Economic Zone in the state of West Bengal, India.

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