DIVIDEND

DISTRIBUTION
POLICY

SUBMITTED BY
B LOHITH KUMAR
2019197
 ABOUT THE COMPANY
Crompton Greaves Consumer Electricals Limited is India’s leading consumer companies with a
75+ years old brand legacy

As of February 2016, Crompton Greaves Consumer Electricals Limited operates as an

independent company under professional management and has 2 business segments – Lighting
and Electrical Consumer Durables
 DIVIDEND DISTRIBUTION POLICY
• For any company, the Dividend Policy of the Company aims to strike a balance between the dual objectives of rewarding shareholders through
Dividends and ploughing back earnings to support sustained growth

• Crompton Greave’s Board of Directors shall consider the following parameters for declaration of Dividend:

• Consolidated net operating profit after tax,

• Working capital requirements; Capital expenditure requirements
• Resources required to fund acquisitions
Internal Factors • Cash flow required to meet contingencies; Outstanding borrowings; Past Dividend Trends

• Prevailing legal requirements, regulatory conditions or restrictions laid down under the
Applicable Laws including tax laws
• Dividend pay-out ratios of companies in the same industry
External Factors
STOCK DIVIDEND DECLARATIONS
• For FY 17, Crompton Graves declared a dividend of INR 1.50 per Ordinary
(Equity) Share of the face value of INR 2 each, payable to those Shareholders
whose names appear in the Register of Members as on the Book Closure Date.
The equity dividend outgo, inclusive of tax on distributed profits would
absorbed a sum of INR 113.15 crores

• For FY 18, Crompton Graves declared a dividend of INR 1.75 per Ordinary
(Equity) Share of the face value of INR 2 each, payable to those Shareholders
whose names appear in the Register of Members as on the Book Closure Date.
The equity dividend outgo, inclusive of tax on distributed profits would
absorbed a sum of INR 132.23 crores

• For FY 18, Crompton Graves declared a dividend of INR 2 per Ordinary

(Equity) Share of the face value of INR 2 each, payable to those Shareholders
whose names appear in the Register of Members as on the Book Closure Date.
The equity dividend outgo, inclusive of tax on distributed profits would
absorbed a sum of INR 151.17 crores
 STOCK DIVIDEND ANALYSIS

• Nearly 31% of Crompton Greaves Consumer Electricals’s profits were paid out as dividends in
the last 12 months
• Also, Of the free cash flow it generated last year, Crompton Greaves Consumer Electricals paid
out 46% as dividends, suggesting the dividend is affordable
• Crompton Greaves Consumer Electricals has been growing its earnings per share at 167% a year
over the past 5 years
• Earnings per share have rocketed in recent times, and the company is retaining more than half of
its earnings to reinvest
 BUYBACK & STOCK SPLIT

• Crompton Greaves Consumer Electricals Limited neither announced any stock repurchase option
not declare stock split to its shareholders
• But Crompton Greaves before demerging its consumer business as Crompton Greaves
Consumer Electricals did announce a buyback offer in 2013 to purchase more than 2.12 crore
shares
• The maximum buyback size was Rs 2,65.7 crores representing approx. 10% of the aggregate of
the company's total paid-up equity share capital plus free reserves as on March 31, 2012