Monday, January 18, 2010

HAL pays Rs 48 crore as interim dividend

Hindustan Aeronautics Limited (HAL) a premier Defence Public Sector Unit has paid an interim dividend of Rs. 48.20 crore (excluding tax of Rs. 8.20 crore) for the year 2009-10. The dividend cheque to this effect was presented to Defence Minister Antony by the Chairman and Managing Director of HAL Nayak in New Delhi, today. Complimenting the company for its performance, the Defence Minister asked that HAL should never compromise on quality under any circumstances. The CMD assured the Minister that the company will keep up to its high standards and quality.

The company has seen the phenomenal growth in payment of dividend over the last ten years. It has paid 338 per cent dividend in 2008-09 as against 20 per cent in 1998-99. Against the equity investment of Rs. 120.50 crores by Government the company has so far paid a dividend of Rs. 1801 crores to Government (plus an additional payment of dividend tax of Rs. 236 crores). The company paid a dividend of Rs. 200.50 crores, 250 crores, 327 crores, 347.98 crores (excluding dividend tax) in the financial years 2005-06, 2006-07, 2007-08, 2008-09, respectively.

HAL has made these dividend payments despite the fact that HAL has to fund significant Capital expenditure on various new projects such as SU 30 Manufacturing, ALH etc, without waiting for customer funds.

Several ambitious Research and Development projects such as FGFA, MLH, MRTA involving large capital outlays are also planned for future.

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