Hikal announces 65 pc annual dividend

Mumbai, May 18: Hikal Ltd has announced an annual dividend of 65 per cent equity share at Rs 6.50 per share after posting an impressive annual growth for financial year 2005-06.

The company's net sales for the year ended March 31 rose to Rs 231 crore as against Rs 187 crore for the previous year, an increase of 24 per cent. Net profit for the year jumped to Rs 41.4 crore, up by 21 per cent from Rs 34.1 crore in 2004-05.

Commenting on the earnings, Hikal Ltd Vice Chairman and Managing Director Jai Hiremath said, ''Last year, Hikal made some strategic investments that would take the company on an aggressive growth path in the coming quarters. The restructuring efforts at our subsidiary would continue, the results of which would be reflected in the year to come.

Hikal has recently acquired a minority stake in subsidiary of USD 20 Billon Sinochem Corporation, and also signed a long-term agreement with German Chemicals giant, Degussa, in the year 2004-05, Hikal successfully raised USD 25 million through FCCBs and Convertible Preference Shares, he added.

UNI