May 12: The board of directors of Hero Honda Motors Ltd (HHML) today recommended a 50 per cent dividend for 1998-99 on its post-bonus equity besides an additional 25 per cent ``special millenium'' dividend on total equity following a 58 per cent spiral in net profit during the year.Announcing the results at the board meeting here, HHML chairman and managing director Brijmohan Lall said the company's net profit for the year stood at Rs 121.37 crore as against Rs 76.60 crore a year ago.It has posted a turnover of Rs 1,553 crore in 1998-99 as compared to Rs 1,156 crore in the previous year, thereby registering a growth of over 34 per cent. The profit before tax increased to Rs 172.73 crore, up 57 per cent from Rs 109.54 crore in the previous year.``It is Hero Honda's endeavour to focus on shareholder value and the dividend payout ratio has been increased substantially from 11.4 per cent in 1997-98 to about 22.68 per cent in 1998-99. Consequently, the dividend for the year has been recommended at 50 percent on post-bonus equity as against 40 per cent on pre-bonus equity for 1997-98,'' he said. The additional 25 per cent dividend, he added, is a reward to its shareholders.Hero Honda presently has a market share of 37.5 per cent in the motorcycle industry. It has grown from 35.7 per cent in 1997-98. The company claims to have derived benefits out of the expanded capacities with its Gurgaon and Daruhera plants raising output steadily. HHML achieved record sales of 5,30,545 motorcycles, registering a growth of 30 per cent over the previous year and crossing the 2.5 million mark in sales.Pawan Kant Munjal, director of Hero Honda, said, the company had during the year forayed beyond the 100cc segment with its CBZ. The growth in the automobile industry during 1998-99 was about ten per cent while the motorcycle industry grew by around 24 per cent. As against this, Hero Honda achieved a growth of 30 per cent during the period.``I am sure by the year 2002-03, we will be able to produce one million bikes perannum, which would be a great achievement on a worldwide scale,'' he added.
