Home >Companies >News >Castrol India revokes final dividend

MUMBAI : The Board of Castrol India has revoked the final dividend that was declared for the financial year ended 31 December 2019 due to delay in holding the 42nd annual general meeting (AGM) of the company owing to coronavirus spread and a nation‐wide lockdown.

Castrol India, a lubricant maker, follows a January-December financial year.

However, the board has declared a second interim dividend of Rs. 3 per equity share of Rs. 5 each for the financial year ended 31 December 2019.

“These are extraordinary times which require organizations to take extraordinary measures in order to support various stakeholders," said Mr. R Gopalakrishnan, Chairman of Board of Directors after the meeting.

The company said the delay of the 42nd Annual General Meeting of the company from April to July due to the national lockdown on account of the Covid-19 pandemic has impacted many shareholders, small and institutional. The board thus took this decision to pay an interim dividend during these unprecedented times to help release payment earlier to the shareholders.

This second interim dividend, is in addition to the previously declared interim dividend of 2.50 per equity share (2018: interim dividend 2.25 per equity share) for the financial year 2019.

Castrol India Ltd reported its first quarter earnings this week. Due to covid-19’s adverse impact during the March quarter, its revenue dropped by 30% year-on-year to 688 crore.

Covid-19 lockdown commenced in March which impacted Castrol's numbers.

Castrol said the quarter was characterized by the economic slowdown, liquidity crunch, as well as covid-19-led severe demand and supply disruptions, which impacted the Indian lubricant industry.

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