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HUL Q2 net Rs 493cr, declares 300% dividend

Sunday, July 29, 2007

Hindustan Unilever has posted a net profit of Rs 493.08 crore for the second quarter ended June 30, 2007 (Q2FY07) when compared with Rs 380.60 crore in Q2FY06.

According to a release issued by HUL to the BSE today, the results for the quarter are not comparable year-on-year to the extent of amalgamation of Modern Foods (India) and its subsidiary with the company.

Total income for the quarter stood at Rs 3,587.72 crore while it was Rs 3,164.630 crore in Q2FY06.

The board of directors of the company, at its meeting today, announced an interim dividend of 300% i.e Rs 3 per share of Re 1 each for the year ending December 31, 2007.

Hindustan Unilever buyback at Rs 230/shr

Consumer goods major Hindustan Unilever (HUL) today announced that it would buyback equity shares at a price of Rs 230 per share and up to an aggregate amount of Rs 630 crore.

The price is at a premium of 17% over the closing price of the HUL scrip (Rs 196.45) as on 27th July 2007. HUL's average closing share price on BSE for the last six months is Rs 196.

According to a company statement, the total amount proposed for buyback is within 25% of the total paid-up capital and free reserves as per the audited balance sheet as on 31 December, 2006. HUL has Rs 2,723.48 crore as free reserves and paid-up capital. That means, the company could spend a maximum of Rs 680.86 crore on the buyback. The Securities and Exchange Board of India (Sebi) guidelines say a company can buy back shares only up to 25% of its net worth.

The buy back will see HUL’s parent, Anglo-Dutch consumer goods giant Unilever, buying 27.31 million shares, thus increasing its stake in the company by 1.24%. Unilever currently holds 51.42% equity in HUL, while 17.50% of the company’s shares are owned by the general public.

“The buyback is proposed to effectively utilise the surplus cash, and make the balance sheet leaner and more efficient to improve returns,” the statement said. Post buyback, Unilever’s stake in HUL will be 52.66%.

The company proposes to buyback shares at a price not exceeding Rs 230.00 per share on the Bombay Stock Exchange Limited and National Stock Exchange through open market purchases from time to time.

As specified in the SEBI guidelines (buyback of securities) Regulation 1998, the promoters (Unilever) and the directors of the company shall not sell in the proposed buyback process."

Posted by FR at 7:20 PM  


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