New Delhi: The country’s largest two-wheeler maker Hero Honda on Wednesday declared a 3,500% interim dividend of Rs70 per equity share of Rs2 each.
In its board meeting held on Wednesday, the company considered and declared “an interim dividend at the rate of 3,500% that is Rs70 per equity share of Rs2 each”, Hero Honda said in a filing to the Bombay Stock Exchange (BSE).
The company, however, did not mention how much will be the capital outgo due to this exercises and other details regarding the period for the dividend.
Repeated calls to chief financial officer Ravi Sud and to a company spokesperson remained unanswered.
Reacting sharply, the shares of Hero Honda were trading 6.28% up at Rs1,742 a piece on the BSE during late-afternoon.
In March last year, the company declared a silver jubilee special dividend of 4,000% or Rs80 per equity share of Rs2 each.
In 2009, Hero Honda had said it was sitting on a huge cash reserve of over Rs4,000 crore and the company was looking at many options to use the fund, including special dividend to its shareholders or expanding capacity.
During April-December, 2010, the company’s net profit fell by 12.66% to Rs1,426.29 crore from Rs1,633.02 crore in the same period previous year.
The total net operating income during the 9-month period increased by 19.36% to Rs14,010.22 crore from Rs11,738.19 crore in the year-ago period.
Meanwhile, Hero Honda appointed Toshiyuki Inuma as a non-executive additional director with effect from 13 April.
Besides, the company also approved resignations of its non-executive director Yuji Shiga and non-executive and independent director Shobhana Bhartia from its board with effect from 13 April.
In December last year, the Indian promoter of the two-wheeler maker, the B. M. Munjal family, had agreed to buyout the entire 26% stake of the Japanese promoter Honda Motor Co in Hero Honda for Rs3,841.83 crore. The process of Honda exiting the joint venture completed this month.