Oil and gas sector leads profit pool, says Motilal Oswal report

The oil and gas sector has emerged as one of the largest contributor to the overall profit or dividend pool, said Motilal Oswal Financial Services in a report.

According to MOFSL report ‘Payouts’, the oil and gas sector was the largest contributor to the overall profit pool of about 22 per cent, while technology was the largest payout contributor to the overall payout pool at 20 per cent over FY10-20.

The report provides a detailed analysis into one of the key alternatives to capital allocation – ‘Payout to shareholders’ – to understand its importance in shareholders’ value creation.

“Over FY10-20, 186 companies under MOFSL universe have delivered an average payout ratio of 41 per cent with shareholder CAGR return of 8 per cent.”