Hindustan Unilever to spend Rs 2,000 cr for dividend payment in FY18

FMCG major Hindustan Unilever Ltd (HUL) will loosen its purse strings by Rs 2,084 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 Rs 8 per share of face value Re 1 each for the year ending March 2018.

The dividend amounting to Rs 1,732 crore will cover about 216 crore shares, Hindustan Unilever said in an investor presentation.

Besides, there is a Rs 352 crore dividend distribution tax which will be borne by the company.

Last fiscal, the company had paid dividends amounting to Rs 1,515 crore for similar number of shares, down 14.32 per cent. The dividend distribution tax was Rs 308 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 per cent jump in standalone net profit at Rs 1,276 crore for the September quarter on the back of lower expenses, despite short-term challenges including transition to the new GST regime from July 1.

The company had posted a net profit of Rs 1,096 crore during the same period of the previous fiscal.

Net sales during the quarter under review stood at Rs 8,199 crore as against Rs 8,335 crore in the year-ago period, down 1.63 per cent.

HUL's expenses in the second quarter were down 5.95 per cent at Rs 6,748 crore compared to Rs 7,175 crore during July-September last fiscal.