One Dividend

Policy by an
Organization
- Team 2
 What is a Dividend?
• Dividends are payments made by a
corporation to its shareholder members.

Payout

Retention

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 Forms of Payment
1. Cash dividend
2. Stock or scrip dividend
3. Property dividends
4. Other dividends

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 Dividend Policy
• It is a financial decision that determines
the divisions of earnings between payment
to shareholders and retained earnings.
• Dividend – portion of profits distributed
• Policy- plan of action

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 Torrent Pharmaceuticals
Ltd.
• Type: Public
• Industry: Pharmaceuticals
• Founded: 1959
• Headquarters: Ahmedabad, India
• Key person: U.N. Mehta
• Employees: 4000+

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 Its Operations
• The company's key areas are
Formulations, Drug Discovery, Marketing
and Sales of Drugs
• A dominant player in the therapeutic areas
of cardiovascular (CV) and central nervous
system (CNS)
• A 4000+ strong field force caters to around
2, 00,000 doctors across the country,
which makes it rank 5th in terms of market
reach.
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• Torrent has a modern and well-equipped
state-of-the-art R&D Centre- with an
investment of US $ 40 million.
• It is manned by more than 525 highly
qualified scientists, with a combined
experience of over 2500 scientific man-
years in Drug Discovery and
Development.
• Torrent Pharma has earmarked 9% of
sales year-after-year for R&D
advancement.

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• Torrent Pharma exports to more than 50
countries around the world with over 1000
product registrations.

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 Dividend History
• Date Dividend paid
• 8-6-2010 Rs. 6
• 10-6-09 Rs. 4
• 23-6-08 Rs. 3.5
• 26-3-07 Rs. 3
• 19-6-06 Rs. 2.5

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 Shareholding Pattern
• Last March, 2011

Interest
Promoter 71.51%
FII 3.57%
DII 12.75%
Others (general public) 12.17%
Total 100%

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• Currently, the share price is 614.25
(in crores)

Sales 450

PAT 65.95

EPS 7.79

• Market capital- 5196

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• Scrip ID: Torrentph
• Scrip code: 500420
• Group: B
• Index: BSE500
• Face Value: 5
• Industry: Pharmaceutical

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• Compared with other Pharmaceutical
companies:
EPS
• Cipla 2.67
• IPCA Lab 5.10
• Wockhardt 6.09

• Torrent Pharma is consistently giving the

highest dividend to the investors.
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 Factors affecting
dividend policy
1. Stability of earnings
2. Age of corporations
3. Government policies
4. Taxation policy
5. Past dividend rate
6. Repayments of loan

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Thank You