NEW DELHI: Hero Honda declared its highest dividend yet on Tuesday, and held out the possibility of another payout next month, part of the company' spush to reward shareholders as it celebrates its silver jubilee this year.
The world’s largest two-wheeler maker by volumes will pay a 4,000% interim dividend of Rs 80 on each share of Rs 2 face value, which in percentage terms is the highest payout by an Indian company to date.
The Munjal family-controlled Hero Group and Japan’s Honda Motor Co, owners of 26% each in the company, will gain nearly Rs 486 crore each after the payout. The interim dividend will result in an outgo of Rs 1,869 crore. A second board meet on April 19 would decide on another dividend from this year’s profits, said Hero Honda CFO Ravi Sud.
In the last 3-4 years, we have accumulated quite a bit of cash, and ... the board thought this is the right time to take care of shareholders,” said Mr Sud.
Hero Honda had cash reserves of Rs 5,400 crore as of today, helped by strong sales and tight capital management. The company hopes to close the year to March 31 with sales of 4.5 million two-wheelers. Its net profit rose 78.3% to Rs 535.77 crore for the quarter ended December 2009 from a year ago.
Hero Honda invested Rs 350 crore this year to expand production capacity and on new products. It is also building a new plant. “With high level of profitability and high EBIDTA margins, cash will continue to accumulate unless the payout ratio is increased substantially,” said Mr Sud.
Shares in the firm closed nearly 2% down at Rs 1,966.70 on Tuesday. Analysts said news of the dividend was discounted by the market. Investors were expecting a big payout from Hero Honda, as it’s a cash-rich company and treasury returns have not been good in recent months, said Vaishali Jajoo, analyst with Angel Broking in Mumbai.
Hero Honda is known for its double-digit dividends, but its latest interim dividend payout is around four times the final dividend payouts of each of the previous five years. The company paid Rs 20 dividend on every Rs 2 share in 2004-05 and 2005-06. It paid Rs 17, 19 and 20 respectively in the next three years.
The company has set April 15 as the record date for paying the special dividend, it told NSE. That means shareholders will receive the dividend from April 22.
Also see Companies paying the highest dividend in the last 6 years
Showing posts with label sensex. Show all posts
Showing posts with label sensex. Show all posts
Wednesday, April 21, 2010
Saturday, June 6, 2009
Sensex, Nifty hit 10-month highs as bourses progress rapidly
MUMBAI: Indian bourses progressed rapidly with key indices -- Sensex and Nifty -- hitting nearly ten-month highs as investors were heartened by new UPA Government's economic agenda, unveiled by President Pratibha Patil in the week under review.
The markets achieved new highs in sustained volatility and the Sensex closed past the 15,000-psychological level for the first time since September 2, 2008.
Accentuated interest of investors in second-line stocks pushed up the Smallcap and Midcap indices by a whopping 7.88 per cent and 6.98 per cent, respectively, outperforming the bellwether Sensex.
In the week to June 6, the 30-stock BSE barometer ended the week at 15,103.55, a net rise of 478.30 points, or 3.27 per cent, over the week.
Investors were virtually confident that the economic reforms will get a strong push in the first year in the light of a political stability in the country.
Addressing Parliament on June 4, Patil disclosed that the Government would focus on revival in economy which has already showed signs of recovery with a good expansion in the manufacturing activity in May 2009.
Patil said the government will focus on reforms in financial and infrastructure sectors as also disinvestment of public sector undertakings while sticking to fiscal prudence.
India's infrastructure sector output grew 4.3 per cent in April, indicating a gradual economic recovery.
Inflation, too, remained low at 0.48 per cent for the week ended May 23.
The broader 50-share Nifty of the National Stock Exchange advanced by 137.95 points, or 3.10 per cent, to end the week at 4,586.90 from its previous weekend's close.
Foreign Institutional Investors, the principal market moving factor, remained consistent net buyers in equity. Hence, the capital inflows in equity stood at $427 million in the initial four days of the week
Analysts said the market is strongly bullish and may witness a pre-Budget rally. The full Budget is likely to be presented on July 3 by Finance Minister Pranab Mukherjee.
Sectorial indices such as the BSE Consumet Durables Index soared by about ten per cent and the BSE Capital Goods index by 8.40 per cent.
The trading volume for the week was high at Rs 1,30,005 crore on the NSE and Rs 45,288 crore on the BSE compared to Rs 1,11,845 crore and Rs 36,674 crore respectively.
The markets achieved new highs in sustained volatility and the Sensex closed past the 15,000-psychological level for the first time since September 2, 2008.
Accentuated interest of investors in second-line stocks pushed up the Smallcap and Midcap indices by a whopping 7.88 per cent and 6.98 per cent, respectively, outperforming the bellwether Sensex.
In the week to June 6, the 30-stock BSE barometer ended the week at 15,103.55, a net rise of 478.30 points, or 3.27 per cent, over the week.
Investors were virtually confident that the economic reforms will get a strong push in the first year in the light of a political stability in the country.
Addressing Parliament on June 4, Patil disclosed that the Government would focus on revival in economy which has already showed signs of recovery with a good expansion in the manufacturing activity in May 2009.
Patil said the government will focus on reforms in financial and infrastructure sectors as also disinvestment of public sector undertakings while sticking to fiscal prudence.
India's infrastructure sector output grew 4.3 per cent in April, indicating a gradual economic recovery.
Inflation, too, remained low at 0.48 per cent for the week ended May 23.
The broader 50-share Nifty of the National Stock Exchange advanced by 137.95 points, or 3.10 per cent, to end the week at 4,586.90 from its previous weekend's close.
Foreign Institutional Investors, the principal market moving factor, remained consistent net buyers in equity. Hence, the capital inflows in equity stood at $427 million in the initial four days of the week
Analysts said the market is strongly bullish and may witness a pre-Budget rally. The full Budget is likely to be presented on July 3 by Finance Minister Pranab Mukherjee.
Sectorial indices such as the BSE Consumet Durables Index soared by about ten per cent and the BSE Capital Goods index by 8.40 per cent.
The trading volume for the week was high at Rs 1,30,005 crore on the NSE and Rs 45,288 crore on the BSE compared to Rs 1,11,845 crore and Rs 36,674 crore respectively.
Tuesday, May 19, 2009
Sensex creates History; two upper circuits in one day
MUMBAI: Markets have stopped trading for the day as the benchmarks hit another upper circuit Monday as soon as the trade resumed after 2 hour
break. Investors are euphoric after the United Progressive Alliance emerged victorious in the 2009 general elections. ( Watch )
Bombay Stock Exchange’s Sensex was locked at 14272.62 up 2099.21 points or 17.24 per cent. National Stock Exchange’s Nifty was locked at 4308.05, up 636.40 points or 17.33 per cent. According to media reports turnover including cash and F&O was less than Rs 1000 crore.
Marketmen are upbeat given the fact that there will be no interference by the Left Parties and other regional parties in day-to-day functioning of the government and less number of allies will lead to a stable government which will run its course of five years.
BHEL (32.72%), Larsen & Toubro (29.53%), DLF (25.82%), ICICI Bank (25.30%) and HDFC (23.46%) were the top Sensex gainers.
Amongst the sectoral indices, BSE Realty Index was up 25.37 per cent, BSE Capital Goods Index gained 23.47 per cent, BSE Bankex moved 20.27 per cent higher and BSE Oil&gas Index advanced 19.57 per cent.
Market breadth was positinve on the BSE with 833 advances and 11 declines.
The new government which is likely to be sworn in by Friday is expected to come-out with full budget within 45 days of resuming office, according to media reports.
Reforms in the banking sector, divestment of public sector undertakings, infrastructure, retail sector and insurance sector is likely to top the priority list.
Sensex had opened 10.73 per cent or 1305.97 points higher at 13479.39 points to 12011.10. National Stock Exchange’s Nifty was locked at 4203.30, higher by 14.48 per cent or 531.65 points.
break. Investors are euphoric after the United Progressive Alliance emerged victorious in the 2009 general elections. ( Watch )
Bombay Stock Exchange’s Sensex was locked at 14272.62 up 2099.21 points or 17.24 per cent. National Stock Exchange’s Nifty was locked at 4308.05, up 636.40 points or 17.33 per cent. According to media reports turnover including cash and F&O was less than Rs 1000 crore.
Marketmen are upbeat given the fact that there will be no interference by the Left Parties and other regional parties in day-to-day functioning of the government and less number of allies will lead to a stable government which will run its course of five years.
BHEL (32.72%), Larsen & Toubro (29.53%), DLF (25.82%), ICICI Bank (25.30%) and HDFC (23.46%) were the top Sensex gainers.
Amongst the sectoral indices, BSE Realty Index was up 25.37 per cent, BSE Capital Goods Index gained 23.47 per cent, BSE Bankex moved 20.27 per cent higher and BSE Oil&gas Index advanced 19.57 per cent.
Market breadth was positinve on the BSE with 833 advances and 11 declines.
The new government which is likely to be sworn in by Friday is expected to come-out with full budget within 45 days of resuming office, according to media reports.
Reforms in the banking sector, divestment of public sector undertakings, infrastructure, retail sector and insurance sector is likely to top the priority list.
Sensex had opened 10.73 per cent or 1305.97 points higher at 13479.39 points to 12011.10. National Stock Exchange’s Nifty was locked at 4203.30, higher by 14.48 per cent or 531.65 points.
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