Nestle India announces interim dividend of ₹2.75 for FY25

9 Jul 2024 , 11:06 AM

Nestle India announced on Monday an interim dividend of ₹2.75 per share with a face value of ₹1 for the fiscal year 2024-25.

The Board announced an interim dividend of ₹2.75 per equity share of face value of ₹1 each for the fiscal year 2024-25 on the entire issued, subscribed and paid-up share capital, according to a filing by the business.

The interim dividend for the fiscal year 2024-25 will be paid on and from August 6, 2024, together with the final payout for the 15-month fiscal year ending March 2024.

The corporation has already set July 16 as the record date. The dividend will be paid to members whose names appear on the company’s membership register or the depositories’ register of beneficial owners as of the record date.

Shares of a company typically trade ex-dividend on the day or day before the record date. When a firm goes ex-dividend on a specific day, its stock does not reflect the value of the next dividend payment. The ex-dividend date also determines whether stockholders are eligible to receive dividend payments.

Furthermore, Nestle India’s shareholders authorised the continuation of a 4.5% royalty payment to its Swiss parent, Nestle. Almost 99% of shareholders backed the proposal to maintain the present royalty fee payout.

Previously, the corporation withdrew the royalty fee increase to its parent when shareholders rejected it.

Approximately 70.8% of public shareholders voted against the hike. Under Indian regulations, the possible change would be classified as a related party transaction, preventing controlling shareholders from voting.

Nestle India recorded a net profit of ₹934 Crore for the March quarter, up 27% year on year, while revenue from operations grew 9% to ₹5,268 Crore.

At around 10.57 AM, Nestle India was trading marginally up at ₹2,604.50 per piece, against the previous close of ₹2,603.40 on NSE. The counter touched an intraday high and low of ₹2,627.30, and ₹2,593.60, respectively.

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