India Inc hikes interim payout by Rs 900 crore

Riding high on increasing profits, Indian corporations have become more liberal in their dividend payout. Ninety listed entities have proposed to pay interim dividend of Rs 3,125 crore for the financial year 2006-07.

Some of them have already paid dividends. During the comparable period last year, 82 firms had paid interim dividend of Rs 2,235 crore.

As may as 18 companies have paid or proposed interim dividend of over 100 per cent and 17 other entities have proposed between 50 and 99 per cent. Interim payouts by 16 firms are between 25 and 49 per cent, while 31 others have proposed a payout between 10 and 24 per cent.

"We will see more and more companies paying interim dividends, as dividend paid on equity shares is tax-free at the hands of recipients. Both promoters as well as ordinary shareholders of firms benefit from this," said a corporate analyst.

Interim payouts are lined up from information technology (IT), fast moving consumer goods (FMCG), cement, hotels, capital goods, construction and non-banking finance companies.

For the IT and FMCG companies, it has not been a new phenomenon, as TCS, Infosys Technologies, Satyam Computer, Hindustan Lever and Colgate have been paying interim dividends every year. 

TCS has paid two interim dividends of 300 per cent each for the current financial year "" one in the first quarter and another in the second quarter. TCS interim payouts for 2006-07 aggregated to Rs 587 crore. This is 34 per cent of its first half net profit of Rs 1,728 crore.

Among other IT companies, Infosys Technologies has proposed interim payout of Rs 5 per share amounting to an outgo of Rs 278 crore.

HCL Technologies has paid two interim dividends of 200 per cent each, for a total payout of Rs 129.66 crore. Satyam Computer has paid Rs 65.47 crore to its shareholders by way of interim dividends.

Hindustan Lever has earmarked an interim payout of Rs 3 per share for the year ending December 31, 2006, amounting to Rs 661.92 crore.

This is 46.47 per cent from its nine-months profit of Rs 1,424 crore. In the FMCG space, the other big dividend payer is Colgate Palmolive (Rs 57.80 crore).

Gujarat Ambuja Cement, which has extended its accounting year by six months, paid two interim dividends aggregating to 125 per cent (Rs 2.50 per share).

Gujarat Ambuja paid Rs 340 crore from net profit of Rs 935 crore for its trailing 12 months ended September 2006. The other major interim payer is Ranbaxy Laboratories (Rs 93.17 crore).

SPLURGING
In per cent
TCS	600.00
HCL Technologies	400.00
Hind. Lever	300.00
Kennametal India	300.00
EID Parry	225.00
Godrej Consumer	150.00
Sundaram Clayton	130.00
Guj. Ambuja Cem	125.00
Usha Intl.	125.00
Foseco India	120.00
Praj Inds.	108.00
Infosys Tech.	100.00
Dabur India	100.00
GlaxoSmith C H L	100.00
HCL Infosystems	100.00
Alfa Laval (I)	100.00
Monsanto India	100.00
GMM Pfaudler	90.00
Sundram Fasten.	85.00
Asian Hotels	80.00
NRB Bearings	80.00
Financial Tech.	80.00
Madras Cement	75.00
Navneet Publicat	60.00
MRF	60.00
Jetking Infrote	60.00
Asian Paints	55.00
J B Chem & Pharm	55.00
Automotive Axles	55.00
Ranbaxy Labs.	50.00
Satyam Computer	50.00
Elgi Equipment	50.00
Alchemist	50.00
Ramco Inds.	50.00
Colgate Palmoliv	42.50
Castrol India	40.00
Greaves Cotton	40.00
Hexaware	40.00
Triveni Engg.	35.00
Ipca Labs.	35.00
Aventis Pharma	35.00
Balkrishna Inds.	35.00
Monnet Ispat	30.00
Ingersoll-Rand	30.00
Gangotri Textile	30.00
Gabriel India	30.00
Himatsing. Seide	25.00
GVK Power Infra	25.00
Allcargo Global	25.00
Hind.Sanitarywar	25.00
Mohit Inds.	22.00
Ganesh Housing	21.00
Shriram Trans.	20.00
Crompton Greaves	20.00
DCM Shriram Cons	20.00
Universal Cable	20.00
KSB Pumps	20.00
Nag. Agrichem	20.00
Greenply Inds.	20.00
Hatsun Agro Prod	20.00
BLB	20.00
Easun Reyrolle	20.00
Gateway Distripa	15.00
Guj. Alkalies	15.00
T N Newsprint	15.00
Marico	15.00
Apar Inds.	15.00
Prime Securities	15.00
Tripex Overseas	15.00
Natco Pharma	12.50
Jai Balaji Spon.	12.50
Alpine Housing	12.50
ICSA (India)	12.00
Vijaya Bank	10.00
Dewan Housing	10.00
NCL Inds.	10.00
Goldiam Intl.	10.00
Clutch Auto	10.00
Tainwala Polyco.	10.00
Taparia Tools	10.00
Satra Properties	10.00
Nandan Exim	7.50
Aarvee Denims	5.00
Core Projects	5.00
Tyche Inds	5.00
Networth Stock	5.00
J.K.Investo Trd	5.00
Vertex Sec	5.00