Tide Water Oil recommends 2,500 percent final dividend

The directors of automotive lubricant and engine oil-maker Tide Water Oil Company (I) Ltd. on Wednesday recommended a final dividend of 2,500 percent on the company's ordinary shares.

"In view of robust profit and healthy cash flow, the directors have pleasure in recommending a final dividend of 2,500 percent on ordinary shares. This is in addition to the interim dividend of 1,000 percent as distributed on December 1, 2014," the company's chairman Kallol Dutta said at the annual general meeting here.

During 2014-15, the company's gross profit amounted to Rs.243.41 crore as against Rs.103.76 crore in 2013-14.

"However, since certain exceptional items are included, the operating profit before tax achieved amounted to Rs.93.07 crore," he said.

Dutta claimed despite a slump in the lubricants industry due to technology upgradation and lower engine sump size, Tide Water clocked its highest turnover at Rs.1,207.28 crore which increased by 4.53 percent compared to 2013-14 fiscal.

Earnings per share for the year stood at Rs.1,964.53 and the book value per share stood at Rs.5,935.16 at the year-end, as compared to Rs.784.46 and Rs.4,421.03, respectively, in the previous year.

During the last fiscal, the company promoted wholly-owned subsidiaries Veedol International DMCC in Dubai and Veedol International B.V. in Amsterdam for marketing Veedol branded products in the Middle-East and Europe.

"Veedol Deutschland GMBH which operates from Hamburg, had been set up during the previous year as a 100 percent subsidiary of Veedol International BV for marketing its products in the DACH region," he said.

It also floated Veedol International Americas Inc. as a wholly owned subsidiary of Veedol International Limited, Britain, during the last fiscal.

"This will market Veedol products in the Andean region of South America, consisting of Colombia, Ecuador, Peru and Chile. Veedol International Limited has also licensed the Veedol brand to a licensee in North America and another licensee in Bangladesh for sales thereat," the official said.

Tide Water Oil had acquired the entire stakes of Veedol International Limited in October, 2011.

The company's revenue from wind energy project amounted to a meager Rs.1.60 crore.

"With on-going governmental support, this sector is expected to display improved performance and continue to generate cash profits over the years," Dutta added.