The slowdown in corporate earnings has affected interim payouts by companies, with only 58 firms declaring interim dividends in the first half of this financial year compared with 87 in the year-ago period.
Of these 58 companies, 35 have paid interim dividend last year too, while the 23 others are new to the list. Fifty-two companies, which gave interim dividends during the six-month period last year, have not done so this year. The companies include ACC, DLF, Larsen & Toubro, NMDC, Wipro, Dabur India and Glenmark Pharma.
The 58 firms, which announced interim payouts, have recorded a 14-per cent rise in their net profit for the six months ended September 30, compared to a 33 per cent decline in net profit of the corporate sector as a whole.
However, the interim dividend-paying companies have distributed only 13.55 per cent of their first-half net profit compared to the payout of 15.5 per cent by the 87 firms in the previous year.
Even if one takes the common sample of 35 firms, the dividend payouts have fallen from 22.6 per cent to 15.6 per cent.
While 13 companies have declared interim dividend of over 100 per cent, 14 others announced between 50 and 100 per cent. Twelve companies paid between 25 and 50 per cent and the remaining 19 companies between 5 and 25 per cent.
Some companies went a step ahead and announced dividends despite decline in their net profit. Financial Technologies (300 per cent), Ambuja Cement (60 per cent), KCP (50 per cent), IPCA (40 per cent), Ingersoll Rand (30 per cent), Hexaware (25 per cent), United Breweries (15 per cent) and Varun Shipping (15 per cent) have paid interim dividend despite a decline in their net profit by over 25 per cent in the first half of the current financial year.
TCS, Amrutanjan Health Care, Crisil, Hindustan Unilever, Financial Technologies, Nestle India, Infosys, Godrej Consumer Products, Esab India, Monsanto India, Alfa Laval, Sulzer India and GlaxoSmith CHL were liberal pay-masters with each of them giving interim dividend of over 100 per cent. Among these companies, promoters' stake are more than 60 per cent in Sulzer India, Alfa-Laval, TCS, Monsa.
