FMCG Dividend policy
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Transcript of FMCG Dividend policy
![Page 1: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/1.jpg)
ITC Ltd.
Mkt Cap (Rs Cr) 160,246.92
Face Value (Rs) 1
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 4987.61 4061.00 3263.59 3120.10 2699.97
EPS (Rs.) 6.45 10.64 8.65 8.28 7.18
Dividend per share (Rs.) 4.45 10.00 3.70 3.50 3.10
Dividend payout ratio
(%)
80.24 109.63 50.06 49.45 50.53
Earning retention ratio
(%)
17.06 -12.31 48.67 47.98 48.75
#Note: In March’10, ITC paid dividend at unusual high rate of 1000%. The reason for paying at
such a high rate was that it was a centenary year for the company. Because of this special
occasion company paid its shareholders a Proposed Dividend for the financial year at the rate of
Rs. 4.50 per ordinary share of Rs. 1/- each plus Proposed Special Centenary Dividend of Rs. 5.50
per ordinary share of Rs. 1/- each. It resulted in a proposed dividend of Rs. 10 per ordinary
share of Rs. 1/- and thus yielding rate of 1000%.
![Page 2: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/2.jpg)
Hindustan Unilever Ltd.
Mkt Cap (Rs Cr) 82,384.94
Face Value (Rs) 1
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 2305.97 2202.03 2496.45 2101.47 1923.79
EPS (Rs.) 10.68 10.09 11.45 9.64 8.83
Dividend per share
(Rs.)
6.50 6.50 7.50 9.00 6.00
Dividend payout ratio
(%)
71.20 75.20 76.47 131.80 81.45
Earning retention ratio
(%)
22.71 21.25 18.50 -39.13 -0.12
# Note: In March’09, HUL paid an above average dividend of Rs. 9. HUL paid an additional Rs. 3
per share as Special Platinum Jubilee Dividend to commemorate Company’s 75th year of
operations in the Country resulting in higher than average payout ratio.
![Page 3: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/3.jpg)
Nestle India Ltd.
Mkt Cap (Rs Cr) 42,569.28
Face Value (Rs) 10
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 961.55 818.66 655.00 534.08 160.15
EPS (Rs.) 99.73 84.91 67.93 55.39 16.61
Dividend per share
(Rs.)
48.50 48.50 42.50 33.00 25.50
Dividend payout ratio
(%)
66.54 83.52 89.76 89.50 88.97
Earning retention ratio
(%)
34.09 18.15 10.75 11.33 12.50
#Note: In March’11, Nestle India Ltd did not maintain its dividend payout ration. Reason stated
by the company was that it had to keep in with financial needs for capital expenditure.
![Page 4: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/4.jpg)
Asian Paints Ltd.
Mkt Cap (Rs Cr) 30,045.47
Face Value (Rs) 10
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 775.15 774.50 361.91 377.89 269.93
EPS (Rs.) 80.81 80.74 37.73 39.40 28.14
Dividend per share
(Rs.)
32.00 27.00 17.50 17.00 13.00
Dividend payout ratio
(%)
46.06 39.03 54.19 50.84 52.36
Earning retention ratio
(%)
53.54 54.64 47.00 49.34 46.82
#Note: Asian Paints Ltd seems financially very stable and it has maintained a stable dividend
policy. It increases its dividend in proportion with profit when the profit jumps significantly.
![Page 5: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/5.jpg)
Dabur India Ltd.
Mkt Cap (Rs Cr) 18,695.66
Face Value (Rs) 1
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 471.43 433.15 373.56 316.77 252.08
EPS (Rs.) 2.71 4.99 4.32 3.67 2.92
Dividend per share
(Rs.)
1.15 2.00 1.75 1.50 1.75
Dividend payout ratio
(%)
49.42 46.86 47.41 47.86 55.24
Earning retention ratio
(%)
49.40 51.67 50.11 50.87 42.64
#Note: Dabur India Ltd has maintained a stable dividend policy at an average of 49.3% dividend
payout ratio irrespective of its earnings.
![Page 6: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/6.jpg)
GlaxoSmithKline Pharmaceuticals Ltd.
Mkt Cap (Rs Cr) 17,532.90
Face Value (Rs) 10
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 430.60 563.69 512.29 576.57 537.66
EPS (Rs.) 50.84 66.55 60.48 68.07 63.48
Dividend per share
(Rs.)
40.00 30.00 40.00 36.00 31.00
Dividend payout ratio
(%)
69.54 57.43 68.75 66.35 54.88
Earning retention ratio
(%)
33.74 43.87 14.74 13.09 17.90
#Note: GlaxoSmithKline Pharmaceuticals Ltd has maintained a stable dividend policy at an
average of around 63.3% dividend payout ratio.
![Page 7: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/7.jpg)
Godrej Consumer Products Ltd.
Mkt Cap (Rs Cr) 15,276.07
Face Value (Rs) 1
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 434.96 248.12 161.55 148.10 132.16
EPS (Rs.) 13.44 8.05 6.29 6.56 5.85
Dividend per share
(Rs.)
4.50 4.25 4.00 4.00 3.75
Dividend payout ratio
(%)
45.19 59.34 74.58 73.26 79.82
Earning retention ratio
(%)
51.22 40.01 25.64 30.78 18.19
#Note: Godrej Consumer Products Ltd Pharmaceuticals Ltd has maintained a stable dividend at
an average of around Rs. 4 per ordinary share.
![Page 8: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/8.jpg)
Colgate-Palmolive (India) Ltd.
Mkt Cap (Rs Cr) 14,048.80
Face Value (Rs) 1
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 402.58 423.26 290.22 231.71 160.17
EPS (Rs.) 29.60 31.12 21.34 17.04 1.18
Dividend per share
(Rs.)
22.00 20.00 15.00 13.00 9.50
Dividend payout ratio
(%)
86.65 75.08 82.05 98.24 92.47
Earning retention ratio
(%)
11.94 22.44 17.50 -4.47 34.60
#Note: Colgate-Palmolive (India) Ltd has a dividend policy which maintains an average payout
ratio of around 86%. To meet its payout ratio it makes appropriate changes to its dividend per
share.
![Page 9: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/9.jpg)
United Breweries Ltd.
Mkt Cap (Rs Cr) 11,985.17
Face Value (Rs) 1
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 167.98 96.97 62.50 62.47 65.09
EPS (Rs.) 6.60 4.04 2.60 2.89 3.01
Dividend per share
(Rs.)
0.60 0.36 0.30 - 0.25
Dividend payout ratio
(%)
14.00 12.65 17.57 2.28 10.97
Earning retention ratio
(%)
85.47 84.40 84.91 97.69 88.83
#Note: United Breweries Ltd does not put much emphasis on its dividend figures and it provides
very petty dividends.
![Page 10: FMCG Dividend policy](https://reader035.fdocuments.us/reader035/viewer/2022081720/544bbe65af79599c438b54c0/html5/thumbnails/10.jpg)
GlaxoSmithKline Consumer Healthcare Ltd.
Mkt Cap (Rs Cr) 10,924.11
Face Value (Rs) 10
Particular Year
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Net profit / loss (Cr) 355.21 299.85 232.78 188.33 162.60
EPS (Rs.) 84.45 71.29 55.34 44.78 38.62
Dividend per share
(Rs.)
50.00 18.00 15.00 12.00 10.00
Dividend payout ratio
(%)
81.77 38.04 39.18 36.29 37.77
Earning retention ratio
(%)
19.40 61.64 60.04 63.66 61.87
#Note: GlaxoSmithKline Consumer Healthcare Ltd maintains a stable dividend policy where it
maintains around 38% dividend payout ratio but March’11 is an exception because it paid a
special dividend of Rs. 25 in excess of proposed dividend to celebrate the Golden Jubilee of
Company.