India Inc dividend payout up 43% in 03-04

For shareholders keen on earning dividends, the last fiscal has been a good one. The private corporate sector paid Rs 10,261 crore by way of...

For shareholders keen on earning dividends, the last fiscal has been a good one. The private corporate sector paid Rs 10,261 crore by way of dividend in 2003-04, up a healthy 43.1 per cent from 7,172 crore in 2002-03. Among the 235 dividend-paying companies for 2003-04 and 2002-03, 184 raised the dividend amount, 40 maintained their levels, while only 11 paid lower dividend.

The ratio of dividends to net profit increased from 30.5 per cent in 2002-03 to 33.7 per cent in 2003-04. The top dividend paying companies during 2003-04 in percentage terms are Infosys Technologies, Wipro, Hero Honda Motors, L&T, HLL, ITC, Ranbaxy Lab, Tisco, Tata Motors and Reliance Industries.

Among the 235 companies, Tata Motors, HCL Technologies, Infosys Techno, Wipro, Everest Industries, HCL Infosystems, Gilette India and Sesa Goa have raised their dividend payment significantly. Of them, Tata Motors has paid a dividend amount of Rs 282 crore 2003-04. This was a good 120.5 per cent higher than what it paid in 2002-03.

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Krishnamurthy Vijayan, CEO of JM Mutual Fund said: ‘‘One main reason for increasing in dividend payout was the favourable dividend tax structure which prompted companies to pay out profits as dividend before the Budget. This is a good way to reward shareholders, particularly the retail segment, so as to keep them interested in the share market’’. The net profit, equity dividend and net worth of 250 companies (sales above Rs 50 crore) closed their accounts between April 2003 and March 2004. Only dividend paying companies during 2003-04 were considered for the study. For some companies, since the accounts do not relate to a full year, annual adjustments were made in the computation.

Companies which reduced their dividend payment significantly during 2003-04 are VSNL, Castrol India, Rolta India, Sundaram Fasteners and Narmada Chematur.

Uttarakhand rain: 12 in Chamoli go missing as buildings collapse, rescue ops underway

India2 hr ago

At least 12 people have gone missing in Uttarakhand after a rainfall-triggered debris slide hit Nandnagar of Chamoli district early on Thursday, bringing down several buildings. The administration and rescue teams have reached the spot to search for the missing individuals.

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