Nestle To Pay Record 60% Dividend For 96-97
In what is to be its highest-ever dividend payout in India, Nestle India has decided to pay a 60 per cent dividend to its shareholders for the financial year ended 1997. The total dividend payout by the company during the year would be Rs 63.60 crore, an increase of 80 per cent over the previous years figure.
Nestle India will be announcing a final dividend of Rs 1.50 per equity share for the financial year ended December 1997. The company had earlier paid two interim dividends totalling Rs 4.50 per equity share during the year.
The dividend announcements would be made by the company board of directors during the 39th annual general meeting of Nestle India to be held on May 28. The total dividend payout is inclusive of the corporate dividend tax to be paid by the company.
The company, which has already notified the major bourses about its forthcoming AGM, has stated that the agenda of the meeting was to transact ordinary business which includes the re-appointment of MWO Garrett and BM Khaitan as directors on the board, the appointment of auditors and the special business of approval of the appointment of Rajendra Singh as the managing director of the company for a period of nine months effective April 1, 1998.
In the explanatory statement regarding the special business of the appointment of an interim managing director, the company has stated that: DE Ardeshir resigned as managing director of the company with immediate effect on April 1, 1998. Under the circumstances and in the interest of ensuring the smooth continuity of business operations of the company, pursuant to notification by Nestle SA.....the board of directors on April 1, 1998, appointed Rajendra Singh as the managing director with immediate effect on terms and conditions to be decided and agreed with Singh. The 39th AGM of Nestle India will adopt the accounts of the financial year ended December 31, 1997.
Nestle India had posted a net profit of Rs Rs 74.3 crore for the financial year ended December 31, 1997, clocking a 41 per cent increase over its previous years figure of Rs 52.8 crore.
The company had recorded a gross revenue of Rs 1,434.8 crore, an increase of nearly 18 per cent over the previous year's figure of Rs 1,214.4 crore. Besides, net sales had grown by 18 per cent to Rs 1,425.6 crore (Rs 1,204.8 crore).