India Inc`s dividend payout drops to 5-yr low

20072008 EID Parry29525 HPCL18030 Eicher Motors29050 JB Chem13025 Indian Oil19055 ICI (India)27080 Bharat Electron18060 Raymond5025 Essel Propack10060 Natl Aluminium7545  However, out of the 657 companies, 361 increased their rate of dividend in the year while 196 maintained the same level as in the previous year even as 100 others pruned their payouts.  Several state-run companies cut the dividend rates after reporting a drop in net profit for FY08. Bharat Heavy Electrical, the country's biggest power equipment maker, announced a dividend of Rs 15.25 a share, or 152.50 per cent in FY08 as compared with Rs 24.50 a share, or 245 per cent in the previous year.  Indian Oil Corporation announced a 55 per cent dividend in FY08 as compared with 190 per cent and Hindustan Petroleum will pay 30 per cent dividend as against 180 per cent in the previous year.  NTPC and NMDC increased their dividend rate at 35 per cent (32 per cent) and 385 per cent (352 per cent), respectively, while GAIL maintained the same dividend rate of 100 per cent for the last two financial years.  Wipro, Tata Motors, Ranbaxy Laboratories, Sterlite Industries, Ashok Leyland, Suzlon Energy and Bharat Forge also maintained the same dividend rate in FY08.  Among the 350 companies that increased their dividends, 58 companies, which had not paid any dividend in FY07, shared profits with their shareholders in FY08 even as 46 companies more than doubled their dividend payout for FY08 from that of the previous year.  Esab India, Indiabulls Real Estate, Jai Corp, Punjab Tractors and Swaraj Engines announced more than 50 per cent dividend each for FY08 against zero dividend in FY07.  Central Bank of India, Motilal Oswal Financial Services, HDIL, IVR Prime Urban and Jaiprakash Hydro are among the newly listed companies that have declared the dividend to their shareholders in FY08.  Hexaware Technologies, Bharat Electronics, JB Chemicals, EID Parry, Eicher Motors, Aventis Pharma and Essel Propack cut their dividend payout after reporting low profits in FY08.  ONGC, which paid Rs 6,631 crore dividends in FY07, have so far not declared its financial results for FY08.  TCS declared a 1,400 per cent (Rs 14 a share of Re 1 each) dividend in FY08 as against 1,300 per cent dividend paid in last year.  Infosys Technologies announced a dividend of 665 per cent (Rs 33.25 a share of Rs 5 each) that includes special dividend of 400 per cent (Rs 20 per share) as compared with the total dividend of 230 per cent (Rs 11.50) paid in the previous year.  Private sector giant Reliance Industries announced a dividend of 130 per cent as compared with 110 per cent last year. Larsen & Toubro boosted its dividend to 850 per cent (657 per cent in FY07). ITC raised it to 350 per cent (310 per cent) and ICICI Bank increased it to 110 per cent (100 per cent).