India Inc is rushing to distribute profits among its shareholders in the form of interim payouts for financial year 2004-05.
In the first five weeks of 2005 alone, as many as 75 companies have proposed interim dividends. In contrast, only 44 companies paid interim dividends in the first five weeks of the previous calendar year.
Historically, only multinational companies in the fast-moving consumer goods issued interim dividends. Last year, profitable public sector companies were asked to disgorge their profits through interim dividends to bridge the fiscal deficit.
Now, cash-rich companies with bountiful profits in the first nine months of 2004-05 are queuing up to reward shareholders with interim dividends.
The dividend payout by these companies ranges between a high of 350 per cent and a token 3 per cent. Five companies have the distinction of paying out more than 100 per cent interim dividend.
These include, Tata Consultancy Services (350 per cent), HCL Technologies (200 per cent), Cummins India, Indian Hume Pipe and Mercator Lines (100 per cent each).
Steel Authority of India, which experienced a turnaround in 2003-04, is back in the dividend list after making huge profits in the first nine months of 2004-05. SAIL proposes to pay an interim dividend of 15 per cent after the gap of six years.
Godrej Consumer Products announced a third interim dividend for the year, at 75 per cent, after paying two interims of 50 per cent each. TCS, HCL Infosystems, Balkrishna Industries, Madras Cement, Ramco Industries, GE Shipping, Greaves Cotton, Rajapalayam Mills and Lakshmi Overseas have declared interim dividends for a second time for financial year 2004-05.
Essel Propack has announced an 80 per cent dividend, HCL Infosystem and Tata Infotech have declared interim dividends of 70 per cent each. Datamatics Technologies has declared a maiden interim dividend of 25 per cent for 2004-05.
Most of the shipping and metals firms have declared an interim dividend for the first time in the current financial year.
Great Eastern Shipping has declared a second interim dividend of 25 per cent, Jindal Stainless has declared a 60 per cent dividend, PSL Holdings is paying out 25 per cent, National Aluminum 20 per cent, Bhushan Steel 10 per cent and Shreyas Shipping 7 per cent.
