New Delhi: FMCG major Hindustan Unilever Ltd (HUL) will loosen its purse strings by Rs2,084 crore for paying dividend to shareholders as well as the dividend distribution tax in the current fiscal. The board of the consumer goods maker has declared an interim dividend of Rs8 per share of face value Re1 each for the year ending March 2018.
The dividend amounting to Rs1,732 crore will cover about 216 crore shares, Hindustan Unilever said in an investor presentation. Besides, there is a Rs352 crore dividend distribution tax which will be borne by the company. Last fiscal, the company had paid dividends amounting to Rs1,515 crore for similar number of shares, down 14.32%. The dividend distribution tax was Rs308 crore last year.
“The company’s Dividend Distribution Policy shall ensure that it returns cash from operations that is in excess of its immediate and foreseeable needs back to the shareholders over the long term,” an HUL spokesperson told PTI.
The board has declared an interim dividend due to strong overall performance in a challenging business environment, the spokesperson added. HUL reported a 16.42% jump in standalone net profit at Rs1,276 crore for the September quarter on the back of lower expenses, despite short-term challenges including transition to the new GST regime from 1 July.
The company had posted a net profit of Rs1,096 crore during the same period of the previous fiscal. Net sales during the quarter under review stood at Rs8,199 crore as against Rs8,335 crore in the year-ago period, down 1.63%. HUL’s expenses in the second quarter were down 5.9% at Rs6,748 crore compared to Rs7,175 crore during July-September last fiscal.