Nestle India Ltds board of directors yesterday announced an interim dividend of 25 per cent, or Rs 2.50 per share, despite an unchanged net profit of Rs 22.3 crore for the first half of the current year.
The company has also made provisions for a corporate tax of 10 per cent in June 1997.
The dividend is being paid on an enlarged capital base of Rs 96.4 crore, consequent to allotment of 32,138,572 fully paid up bonus shares in the ratio of 1:2 on September 30, 1996. The companys capital base stood at Rs 64.3 crore last year.
The companys net sales grew 22 per cent to Rs 624.6 crore in the six months ended June 29, 1997, from Rs 510 crore during the corresponding period last year.
Nestles gross revenue in the first half of the year stood at Rs 628.8 crore, up from Rs 513.3 crore in the corresponding period in 1996.
The companys gross profit after interest, but before depreciation and taxation stood at Rs 37.2 crore, up from Rs 35.1 crore.
Nestles provision for deprecation increased to Rs 13.5 crore, against Rs 11.8 crore in the first six months of 1996. The higher depreciation was due to capitalisation of various projects, claimed Nestle.
The companys interest pay-out increased from Rs 26.1 crore to Rs 28.4 crore.
During the last six months, the company commissioned a new culinary products factory at Bicholim, Goa. Maggi Noodles was the first product manufactured at the factory.
The company said expansion of the Ponda factory, which manufactures Kit Kat chocolates, and the Samalkha factory, which makes Milkmaid dessert mixes, is being undertaken as planned.
