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India Inc's FY22 shareholder payout higher than biz reinvestment

FY22 was the second consecutive year when shareholder payout exceeded annual investment in fixed assets

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Analysts don’t expect the trend to change anytime soon, given the various macroeconomic headwinds that corporates face right now.

Krishna Kant Mumbai

4 min read Last Updated : Jul 06 2022 | 6:32 AM IST

Corporate India now pays more cash to its shareholders by way of equity dividends and share buybacks than it reinvests in its business for future growth.

In 2021-22 (FY22), listed non-financial companies returned a record Rs 3.05 trillion to their shareholders through dividends and share buybacks, but invested only Rs 1.12 trillion in fixed assets.

Annual investment in fixed assets in FY22 was down 49.1 per cent year-on-year (YoY), while total payout to shareholders was up 18.8 per cent YoY.

FY22 was the second consecutive year when shareholder payout exceeded annual investment in fixed assets.

In 2020-21 (FY21), listed companies

Topics : India Inc Share buybacks BSE 500 BSE Midcap BSE smallcap

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