Progressive Finance (PROFL) Reduces Dividend for FY 2077/78, Why Did This Happen?

Progressive Finance Limited (PROFL) has revised its dividend proposal. The revision is a result of a change in the tax provision, which then impacted the financial reports and also reduced the company's retained earnings.

The company had previously proposed a 7.3684% dividend for the fiscal year 2077/78. This was the company's first-ever dividend proposal. The 473rd meeting of the board of directors held on Poush 01 had decided to distribute the dividend on the paid-up capital of Rs. 80.01 crores. 7% bonus shares worth slightly over Rs 5.6 crores and 0.3684% cash dividend (including tax) worth Rs 29.47 lakhs were proposed.

However, the company has now revised its dividend proposal. 6% bonus shares and 0.3157% cash dividend have been proposed on the paid-up capital of Rs. 80.01 crores. Thus, the bonus shares are worth Rs. 4,80,06,000 and the cash dividend is worth Rs. 25,26,631. Thus, the new dividend proposal amounts to a total of 6.3157% on the paid-up capital.

The dividend will be distributed only after approval by the central bank and endorsement by the company's upcoming AGM. PROFL closed at Rs. 424 yesterday.