Hero Honda’s High Dividend Payments to Continue : BikeAdvice |  |
| Hero Honda’s High Dividend Payments to Continue Posted: 13 Jun 2011 06:29 AM PDT
Original Source: Hero Honda's High Dividend Payments to Continue from BikeAdvice.in Hi Everyone! Today there is some exciting piece of news coming from Hero Honda regarding the dividend payment. As many of you might be aware that Hero Honda has very good reputation especially with its shareholders because the company pays handsome amount of money as dividends. The company further made it clear that their high dividends will continue in future too as they have excess cash reserves to fund dividend payments.
The Munjal family, promoters and the shareholders got a treat last fiscal as well as this fiscal by the company's dividend payout policy. Only in this financial year the Munjal family holding more than 50% stake pocketed Rs. 700 crore through the first dividend and Rs.350 Crore through the final dividend. All in all, the company is not in a mood to stop these dividends flowing which is indeed good for the shareholders and the rest of the group. If these dividends continue at the same pace then Hero Honda might be the first choice for any investor to invest in automobile sector. Share on FacebookRelated posts: |
| Two-wheeler Taxis to Hit Indian Roads Soon Posted: 13 Jun 2011 06:28 AM PDT
Original Source: Two-wheeler Taxis to Hit Indian Roads Soon from BikeAdvice.in Two-wheeler taxis will soon ferry passengers in the city. The civic authorities are planning to try the project with motorcycles in the tourist zone of Fort Kochi in the first phase.
According to the authorities, a five-member group will be given support for operating motor bike taxis in select areas of the city in the initial stage. The beneficiaries will have to be suggested by the corporation councilors and approved by the welfare committee constituted by the civic body. The motorcycle taxi scheme was being planned under the livelihood improvement scheme of KSUDP, said City Mayor Tony Chammany. Two banks have come forward to supporting the project and 35 per cent of the project cost will be shouldered by the KSUDP as subsidy. While the contribution of the beneficiaries will be 5 per cent of the total cost, the banks will finance around 60 per cent of the funds required. According to primary estimates, each beneficiary would require around Rs.75,000 for the project, an official of the KSUDP said. The scheme would be launched anytime and the civic authorities were waiting for the beneficiaries to come forward. The fare and routes would be finalised in consultation with the beneficiaries.There would not be any gender discrimination while considering the beneficiaries, said an official. Incidentally, though there were earlier attempts to introduce bike taxies in the city, the scheme had to be wound up following law-and-order issues. Source : ‘The Hindu’ dated June 13. Regards, Related posts: |
On the contrary, if one looks from another view point then one may probably understand that promoters are indeed pocketing handsome amount by declaring these high dividends. The company rolled out 5250% dividend last fiscal and it will continue to do so despite its massive expansion plans. Mr. Ravi Sud (CFO, Hero Honda) said that the company generates Rs.2000 crores of cash reserves every year which is enough to maintain their liberal dividend policy. He was further of the opinion that the company has decided to continue with its policy of high dividends as the two wheeler industry is not very capital intensive. This statement will significantly increase the market value of the company. Last month or so the company rolled out 3500% of dividends followed by 1750% of additional dividend which made their market share price increase.
The project is being introduced by the Kerala Sustainable Urban Development Project (KSUDP) authorities under the Poverty Social Fund.| You are subscribed to email updates from BikeAdvice.in To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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