Hero Honda may offer special dividend to its shareholders
Sitting on a huge cash reserve of over Rs 4,000 crore, Hero Honda may issue a special dividend to its shareholders or capacity expansion, to use the fund. Hero Honda chief...
Sitting on a huge cash reserve of over Rs 4,000 crore, Hero Honda may issue a special dividend to its shareholders or capacity expansion, to use the fund. Hero Honda chief financial officer Ravi Sud told that the company could consider several options for utilising the huge cash reserve. Ravi Sud also said, "Yes, we have a cash reserve of Rs 4,000 crore in our balance sheet. What the company will do with the fund, the board has to decide on that; but there are several options. One of them is to give special dividend to our shareholders." However, Sud stated that nothing has been decided yet and the next board meeting is likely to take place in January only. He further added that the company could also consider merger and acquisitions to utilise this huge cash surplus. Hero Honda which is a joint venture between the Hero Group promoted by the Munjals and the Japanese auto giant Honda Motors received net profit for the September quarter that soared 95 per cent to Rs 597.14 crore, while total income rose by 26.78 per cent to Rs 4,128.15 crore. Honda Unicorn and Honda Activa are the new bikes in India.