Index Agro cuts dividend to 17% despite higher revenue
Board recommends 12% cash, 5% stock dividend
Despite nearly 3% growth in revenue, Index Agro Industries – a producer of poultry feed, fish feed, and day-old chicks (broiler and layer) – has reduced its dividend payout to shareholders for FY2024-25.
The board of Index Agro Industries has recommended a 12% cash and 5% stock dividend, totalling 17% dividend for its shareholders for FY25. It paid a 25% cash dividend to its shareholders in FY24.
Meanwhile, its net profit remained almost flat with 0.73% growth to Tk26.10 crore with an earnings per share (EPS) of Tk5.52, which was Tk25.91 crore and EPS of Tk5.48 in the previous fiscal year.
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According to its financials, in FY25, which ended on 30 June 2025, Index reported a revenue of Tk441.02 crore, and gross profit of Tk89.90 crore, which was Tk428.12 crore and Tk75.81 crore respectively in FY24.
Index Agro Industries said the stock dividend has been recommended to capitalise retained earnings as paid-up capital for strengthening the capital adequacy, and declared out of accumulated profit.
The AGM
To get its shareholders' nod for its financials and dividend, the company called the annual general meeting (AGM) on 15 December, and to identify its shareholders, a record date has been fixed on 9 November.
As per its financials, its net operating cash flow per share at the end of FY25 stood at Tk10.26, which is lower from Tk14.77 in FY24.
While its net asset value (NAV) stood at Tk405.17 crore, which is significantly up from Tk388.10 crore in FY24, its financials showed.
Index Agro raised Tk50 crore from the capital markets with its initial public offering (IPO) under the book-building method.
The company raised the funds to construct buildings, execute other civil works, acquire new machinery and equipment, and meet the cost of the IPO process.
