Shareholders, both individuals and the government, have not had it so good in recent times. Corporate India is sharing the bounty of a good 2002-03 by paying higher dividends.
A Business Standard Research Bureau study shows that 58 per cent of all dividend-paying companies have increased their dividend for 2002-03, while another 27 per cent proposed to maintain them at the previous year's levels.
Of the 503 dividend-paying companies, 241, accounting for 48 per cent of the sample, have hiked their dividend rates.
A good 50 companies have returned to the dividend list after skipping in the previous year, while 132 firms maintained their dividend rates. Only 72 companies pruned their payouts while 8 proposed skipping dividends for the year.
These companies have proposed a dividend payout of Rs 19,947 crore (Rs 199.47 billion) for 2002-03, considerably more than the Rs 13,037 crore (Rs 130.37 billion) paid in 2001-02.
The payouts were higher by 53 per cent, but the payout ratio -- dividends as a percentage of net profits -- was marginally higher at 30.8 per cent (29.3 per cent).
The 28 public sector undertakings were the biggest dividend-paying companies, having stepped up payouts by a healthy 82.2 per cent.
These PSUs accounted for 55 per cent of total dividend paid during the year. The private sector increased its dividend payout by 27.7 per cent, accounting for 45 per cent of the total.
Interestingly, a few companies preferred to share profits by proposing special dividends.
Foseco India proposed a higher dividend of 150 per cent (50 per cent special dividend) compared with the 9 per cent paid last year.
Atlas Copco proposed a dividend of 340 per cent (including a 300 per cent special dividend) as against 40 per cent last year, Hero Honda proposed a dividend of 900 per cent, including a special dividend of 400 per cent.
Aventis Pharma proposed a 160 per cent dividend, including a special dividend of 80 per cent.
ONGC was the biggest dividend payer in corporate India, with a payout of Rs 4,278 crore (Rs 42.78 billion). This accounted for 21.4 per cent of the total payout of the corporate sector. The company, which reported a record net profit of Rs 10,529 crore (Rs 105.29 billion), stepped up the dividend from Rs 14 per share to Rs 30.
Indian Oil Corporation hiked its dividend payout from Rs 11 per share to Rs 29 (pre-bonus), aggregating Rs 2,258 crore (Rs 22.58 billion). HPCL increased its dividend to Rs 18 per share from Rs 10.