Nestle India, one of the leading fast-moving consumer goods (FMCG) companies, announced on Wednesday that it has declared an interim dividend of Rs 27 for the year 2023 on the entire issued share capital. This decision was taken during a board meeting held on the same day. According to the company’s regulatory filing, the interim dividend of Rs 27 will be paid on and from May 8, 2023, to shareholders who are eligible as per the record date of April 21, 2023.
Nestle India follows the January-December calendar year as its financial year. The interim dividend for 2023 will be paid along with the final dividend for the year 2022, if approved by the members at the 64th Annual General Meeting scheduled to be held on April 12, 2023. Nestle India has 9,64,15,716 equity shares of the nominal value of Rs 10 each, and the interim dividend of Rs 27 will be paid on each equity share.
On October 31, 2022, Nestle India had declared a second interim dividend of Rs 120 and a final dividend of Rs 65 on Apr 21, 2022. The company’s upcoming quarterly results are expected to be declared on April 25, 2023.
The shares of Nestle India were trading at Rs 19,401.40 on the Bombay Stock Exchange (BSE) in the afternoon, down 1.38 per cent from the previous close. The shares closed at Rs 19,420, down 1.28 per cent or Rs 251.90 from the close on Tuesday.
Nestle India’s Chairman and Managing Director, Suresh Narayanan, stated that the company is on a path to accelerated growth in rural areas, which has been a big question in terms of performance in India. The company is expanding its reach in what it terms “Rurban,” a combination of rural and semi-urban areas. Despite rural India accounting for only 20 per cent of Nestle India’s business, the company has witnessed growth of around 25 per cent to 26 per cent in these markets. Narayanan expressed confidence in the company’s ability to achieve accelerated growth in rural markets.
In conclusion, the declaration of an interim dividend by Nestle India is expected to benefit shareholders, who will receive a dividend of Rs 27 per equity share of Rs 10 each. The decision to expand in rural and semi-urban markets is a positive sign for the company’s growth prospects in India.