 "Hindustan Zinc's Rs 27,157 cr dividend payout is highest ever in India")
Hindustan Zinc Ltd (HZL) on Wednesday announced a one-time interim dividend of Rs 13,985 crore for the financial year 2016-17, of which the central government will get Rs 11,259 crore against its 29% stake.
Together with dividend paid in April 2016 and interim dividend in October 2016, the dividends paid in FY17, totalling Rs 27,157 crore, are the highest ever paid in India in a financial year, the company said in a release.
The Board of Directors has declared the special one-time interim dividend of 1375% i.e. Rs 27.50 on every equity share of Rs 2, entailing an outflow of Rs 13,985 crore, including dividend distribution tax (DDT). The record date for the dividend will be March 30, 2017.
“We are pleased to reward our shareholders with a special dividend, which reflects the company’s confidence in its continued robust performance and demonstrates our commitment towards delivering value for our shareholders,” Agnivesh Agarwal, Chairman, Hindustan Zinc said.
The company, in March 2016, declared a special golden jubilee dividend of 1200% amounting to Rs 24 on an equity share of Rs 2 each.
“There were indications that the dividend would be higher as the government was asking for it. Also, Vedanta needed money for deleveraging the balance sheet. Even after parting with a huge dividend, the company’s capital expenditure plan would not get impacted,” a Mumbai-based analyst said.
Hindustan Zinc is one of the largest integrated producers of zinc-lead with a capacity of one million tonne a year, and a leading producer of silver.
The company reported a 26 per cent rise in standalone net profit at Rs 2,319 crore for the quarter ended December 31, 2016, on the back of hiked zinc prices and increased metal production. It had posted Rs 1,839.5 crore in the corresponding quarter of the previous financial year.
Together with dividend paid in April 2016 and interim dividend in October 2016, the dividends paid in FY17, totalling Rs 27,157 crore, are the highest ever paid in India in a financial year, the company said in a release.
The Board of Directors has declared the special one-time interim dividend of 1375% i.e. Rs 27.50 on every equity share of Rs 2, entailing an outflow of Rs 13,985 crore, including dividend distribution tax (DDT). The record date for the dividend will be March 30, 2017.
“We are pleased to reward our shareholders with a special dividend, which reflects the company’s confidence in its continued robust performance and demonstrates our commitment towards delivering value for our shareholders,” Agnivesh Agarwal, Chairman, Hindustan Zinc said.
The company, in March 2016, declared a special golden jubilee dividend of 1200% amounting to Rs 24 on an equity share of Rs 2 each.
“There were indications that the dividend would be higher as the government was asking for it. Also, Vedanta needed money for deleveraging the balance sheet. Even after parting with a huge dividend, the company’s capital expenditure plan would not get impacted,” a Mumbai-based analyst said.
Hindustan Zinc is one of the largest integrated producers of zinc-lead with a capacity of one million tonne a year, and a leading producer of silver.
The company reported a 26 per cent rise in standalone net profit at Rs 2,319 crore for the quarter ended December 31, 2016, on the back of hiked zinc prices and increased metal production. It had posted Rs 1,839.5 crore in the corresponding quarter of the previous financial year.
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