Index Agro declares lower dividend despite steady profit growth

Index Agro Industries Ltd, a manufacturer of poultry, fish and cattle feed, has recommended a 12 per cent cash and 5 per cent stock dividend for FY25.

The announcement came following a board meeting held on Thursday.

The company reported a profit of Tk 261 million in FY25, up 0.80 per cent from Tk 259 million a year earlier. Its earnings per share (EPS) rose slightly to Tk 5.52 from Tk 5.48 in the previous fiscal year.

Despite the marginal profit growth, the board recommended a lower dividend payout compared to the previous year when shareholders received a 25 per cent cash dividend.

Index Agro attributed its modest earnings growth to higher sales and increased finance income, despite lingering macroeconomic challenges, according to its earnings disclosure.

The company is yet to disclose annual revenue and finance income for FY25.

However, its nine months' revenue rose 5 per cent year-on-year to Tk 3.13 billion while finance income jumped 46 per cent to Tk 272 million amid rising deposit rates.

The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, dropped to Tk 10.26 per share in FY25, down from Tk 14.77 in the previous year, due to lower collection from customers.

The company will hold its annual general meeting on December 15 while the record date is on November 9.

The company's stock price rose 5.24 per cent to Tk 72.30 on the Dhaka Stock Exchange on Thursday.

Index Agro got listed on the stock exchanges in 2021 to raise Tk 500 million under the book-building method to purchase machinery and equipment, and construct buildings.

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