Godrej Consumer fixes Record Date for third interim dividend

Godrej Consumer Products Ltd has informed that January 30, 2009 has been fixed as the Record Date for the purpose of payment of third interim dividend for the financial year 2008-09, if declared.

High-dividend yield stocks aren't the best bets always

MUMBAI: Though perceived as a safe haven when the market slips into a bear phase, high-dividend yield stocks cannot always be considered as good investment bets, feel analysts. While dividend yield has improved significantly for many companies amid market downtrend since January, analysts are sceptical about sustainability of high rate of dividends due to an impending slowdown in earnings’ growth. They feel there is a risk of making capital loss if a high-dividend yield company is unable to sustain its performance.




Leading stock broking firm India Infoline has identified 25 companies from different industries in the list of BSE-500 companies, as top dividend yield stocks. Fifteen of them, however, have reported a decline in earnings in April-June quarter, prompting the brokerage to take a negative view on fundamentals of most of them.

The analysis covered companies such as Indiabulls Real Estate, Ambuja Cements, Canara Bank, MTNL, Bajaj Auto, ACC, HCL Technologies, Tata Motors, Castrol India, Syndicate Bank, Ashok Leyland, Chennai Petro, Bongaigaon Refinery, Varun Ship, Andhra Bank, HCL Infosys, Wyeth, Bank of Maharashtra, Wochardt, Vijaya Bank, Allahabad Bank, Royal Orchid, GIC, Ador Welding and Mirc Electronics. These companies have offered dividend yield between 3.5% (Tata Motors) and 8.9% (Bongaigaon Refinery) calculated as percentage of dividend per share (annual) to the current market price.





“A majority of the sample companies belong to sectors such as financials, auto, cement, realty and IT, where our fundamental view is negative. Barring IT, all other industries are cyclicals facing difficult business conditions due to slowing economic activity,” said the brokerage in its report.

Ambareesh Baliga of Karvy Stock Broking agrees that one should not take investment decisions simply on the basis of dividend yield. “Investors need to study prospects of a company before taking any investment call. As dividend yield is based on the past performance, it is hardly an indication of the future profitability and sustainability of dividend,” he said.




Historically, high-dividend yield stocks have never given good capital appreciation, according to an analyst with a leading brokerage firm. While investors expect companies to pay good dividends, they, however, are mostly concerned about capital appreciation, which mainly depends on factors such as growth potential, quality of management, industry prospects, domestic and global economic conditions. Given the current economic scenario, investors should not invest in companies with high debt or large capex plans even if dividend yields are attractive, says the analyst.

While analysts generally do not favour investing in high-dividend yield stocks, some of them want investors to take sector-specific approach rather than picking up specific stocks. They advise investors to take shelter in sectors that are less sensitive to interest rate because of low debt. “Defensive sectors like FMCG, pharma and also IT look good as they are expected to cushion investor portfolio against the fall in other sectors,” said Mr Baliga.

Source : economictimes

List of Book Closures and dates.

Company Name Start Date End Date Agenda

Goodyear 01-May-08 16-May-08 60% Dividend

Multifarious Tr 03-May-08 10-May-08 Annual Closure

Essel Propack 06-May-08 12-May-08 60% Dividend

IOB 07-May-08 13-May-08 32% Dividend




Shilp Gravures 10-May-08 17-May-08 21% Dividend

Reliance 10-May-08 17-May-08 130% Dividend

Temptation Food 12-May-08 19-May-08

Bosch 16-May-08 30-May-08 250% Dividend

Motilal Oswal F 16-May-08 31-May-08 80% Dividend

Elantas Beck 19-May-08 26-May-08 40% Dividend (AGM Revised)

White Diamond 19-May-08 24-May-08




BOC India 20-May-08 29-May-08 20% Dividend

Vishal Cotsp 21-May-08 22-May-08

Zuari Inds 22-May-08 29-May-08 Dividend

Ranbaxy Labs 23-May-08 30-May-08 120% Final Dividend

JSW Steel 23-May-08 27-May-08 140% Dividend




Deep Industries 23-May-08 30-May-08

Sulzer 24-May-08 07-Jun-08 100% Dividend

Indian Bank 24-May-08 26-May-08 30% Dividend

Sterling Bio 26-May-08 02-Jun-08 50% Dividend




Axis Bank 26-May-08 06-Jun-08 60% Dividend

Petronet LNG 26-May-08 04-Jun-08 15% Dividend

Nelcast 26-May-08 31-May-08 30% Dividend

Sudal Industrie 27-May-08 02-Jun-08 (Revised)

ABB 28-May-08 03-Jun-08 110% Dividend




Uni Legwears 29-May-08 31-May-08

SE Investments 29-May-08 03-Jun-08

Bharat Seats 29-May-08 04-Jun-08 25% Dividend

Hind Constr 30-May-08 13-Jun-08 80% Dividend

VTM 30-May-08 09-Jun-08 10% Dividend (Revised)

Stovec Ind 30-May-08 05-Jun-08 32% Dividend




Bank of Mah 31-May-08 09-Jun-08 20% Dividend

Allahabad Bank 31-May-08 16-Jun-08 30% Dividend

Infosys 31-May-08 14-Jun-08 545% Dividend (Final Dividend 145% + Special Dividend 400%)

Bata India 31-May-08 19-Jun-08 20% Dividend (Revised)

SBI 02-Jun-08 11-Jun-08 215% Dividend

MphasiS FY08 revenues up 38%, Net profits up 42%

For the year ended 31 March 2008, the MphasiS Group recorded revenues of Rs 2,423 crores a growth of Rs 662 crores, which is 38% over the previous year. Net profit increased by 42% from Rs 180 crores to Rs 255 crores during the year ended 31 March 2008.


The Board of Directors has recommended a final dividend of Rs. 3.30 per share for the year 2007-08.





Consolidated revenues at Rs 658 crores in the current quarter have increased by 31% over the same quarter last year. During the same period net profit increased by 14% from Rs 63 crores to Rs 71 crores.

The Group recorded a consolidated net profit of Rs 71 crores for the quarter ended 31 March 2008, compared to a net profit of Rs 66 crores in the quarter ended 31 December 2007, representing an increase of 8%. Revenues grew by 4% from Rs 632 crores in the quarter ended 31 December 2007 to Rs 658 crores in the quarter ended 31 March 2008.





Commenting on the results Jeya Kumar, CEO, said “This fiscal has been one of change & transformation. With EDS as a strong business partner, the Company has been building a solid foundation for development of capability and capacity. Our leadership team is coming to shape and our employee strength continues to grow with over 27,000 people currently.

We are expanding aggressively and we continue to add new domain specific services to our portfolio to map the demands of the customer”.





During the quarter, the Group added 17 new clients. These include a US based manufacturing company, a technology company in Europe and a US based retail company in Application services and a banking company in Asia Pacific region in BPO services.

This quarter the Group recorded a net headcount increase of 811 to take the total manpower numbers to 27,047. Overall debtors days have marginally increased to 43 days and the Group had a cash reserve of Rs 95 crores as at 31 March 2008. Blended billing rates remained steady