After delivering a huge price appreciation in the last one year, small and mid-cap companies have started paying hard cash to their shareholders in the form of interim dividends.
Seventeen companies thus far have declared interim dividends for 2005-06 to celebrate their healthy April-June 05 quarterly performance. None of these companies had paid interim dividends in the corresponding period last year.
Sacheta Metals, Capital Hotels, Aarvee Denim, Gangotri Iron, REI Agro, Chemfab Alkalies, Prime Properties and Jetking Infrotra declared interim dividends in the range of 5 per cent to 50 per cent.
Among frontline companies, Tata Consultancy Services, Tata Infotech, Colgate-Palmolive, Godrej Consumer Products and Marico have declared interim dividends between 28 per cent and 300 per cent.
Excluding TCS, 16 companies have posted 51 per cent rise in bottomline to Rs 180.69 crore (Rs 1.806 billion) in June 2005 quarter against Rs 119.32 crore (Rs 1.193 billion) in previous year quarter.
Aarvee Denim, Capital Hotels and Saceta Metals declared an interim dividend of 5 per cent for the FY05-06. Gangotri Textiles announced to pay 8 per cent, REI Agro 10 per cent and Chemfab Alkalies 25 per cent.
Prime Property and Development announced interim dividend of 20 per cent for FY05-06. The company had posted a net profit of Rs 2.01 crore (Rs 20.1 million) in Q1 against just Rs 10 lakh (Rs 1 million) in the corresponding previous quarter of the previous year.
TCS has declared 300 per cent interim dividend for FY05-06, the company had paid 500 per cent dividend in whole of 2004-05.
Another Tata group company, Tata Infotech announced to pay 15 per cent interim dividend for the FY05-06.
The company had reported a 72 per cent jump in net profit to Rs 22.70 crore (Rs 227 million) during June 2005 quarter against Rs 13.19 crore (Rs 131.9 million) net profits in last year quarter.
Colgate-Palmolive has declared its first interim dividend of 27.5 per cent against 70 per cent dividend payout last year. Godrej Consumer Products has announced interim dividend of 75 per cent on a Rs 4 paid-up shares. The company had paid total dividend of 300 per cent in whole FY04-05.
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