HUL dives 3% despite stable Q1 result; announces special dividend payout of Rs2,232cr

The HUL dividend will be paid to the shareholders on or after August 17, 2020.

Jul 22, 2020 11:07 IST India Infoline News Service

Hindustan Unilever (HUL) shares tumbled by more than 3% on Wednesday, with an intraday low of Rs2241 per piece on Sensex in early deals, despite the FMCG-major announcing a stable bottom-line and top-line growth in June 2020 (Q1FY21) period.

Among major key highlights from the financial performance was also the announcement of a special interim dividend of Rs9.50 per equity share of the face value of Re1 each for the financial year ending March 2021.

At around 11.54 am, the HUL stock was performing at Rs2262.35 per piece down by Rs56.75 or 2.45% on Sensex.

HUL in its exchange filing said, "The dividend has been declared in pursuance of the order of the Hon’ble National Company Law Tribunal, Mumbai Bench, pursuant to its order dated 30th August 2018, through which the Tribunal had approved the Scheme of Arrangement for transfer of the balance of Rs2,187.33cr standing to the credit of General Reserve to the Profit and Loss Account".

In accordance with the scheme's terms, the HUL board approved the distribution by means of a special dividend of Rs9.50 per equity share face value of Re1 each resulting in total dividend payout to Rs2,232cr.

The company has fixed July 31, 2020, as the record date for the purpose of determining the entitlement of the shareholders for the interim (special) dividend.

The HUL dividend will be paid to the shareholders on or after August 17, 2020.

HUL registered a 7.18% rise in its standalone net profit to Rs1,881cr for the quarter ending June 2020 (Q1FY21), as against Rs1,755cr recorded in the corresponding period of the previous year. In the quarter, the company witnessed revenue of Rs10,406cr, which grew by 4.23% compared to Rs9,984cr a year ago same period.

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