Typo or computation error?
Credit Analysis and Research (CARE Ratings) declared its second quarter (Q2) and half year (H1) ended financial results ended 30th September 2013 on 12th November 2013, wherein its net profit of Rs. 35.05 crore and Rs. 59.35 crore for Q2 and H1 respectively. On equity of Rs. 28.9991 crore (face value Rs 10 each), this translates into EPS of Rs. 12.27 and Rs. 20.78 for Q2 and H1 respectively.
Company has declared a second interim dividend of Rs. 6 per share, in addition to first interim dividend of Rs. 6 per share (declared in Q1), for FY14, aggregating to Rs. 12 dividend so far. In the Press Release to the results, Managing Director and CEO Mr. D R Dogra quoted dividend payout ratio at 57.7% (which is computed as Rs 12 dividend divided by H1FY14 EPS of Rs. 20.78).
However, the very next day on 13th November 2013, company issued a revised press release stating dividend payout ratio, due to a typo error, was mentioned as 57.7% instead of 68.1%. The revised (and correct) 68.1% is computed as Rs. 6 per share Q1 dividend for the then 2.86 crore equity shares plus Rs. 6 per share Q2 dividend for current 2.90 crore equity shares, increased by corporate distribution tax of 16.995% (including 10% surcharge and 2% education cess and 1% higher education cess).
One wonders if the error was typographical or computational!