Most of the Gujarat government PSUs are either in the chemicals, fertilisers or the metal and commodity sectors. These are cyclical industries, where cash flows are not certain and resources need to be conserved for the downcycle.
The state government has mandated a minimum of 30 percent of net profit, or 5 percent of net worth, whichever is higher, to be a minimum level of dividend declared for shareholders.
The government treasury has been bogged down by liquidity issues and monetary support to state-run banks.
In an interview to CNBC-TV18, Shantanu Khosla, MD of Crompton Greaves Consumer Electrical said that they want to grow the topline faster than the market.
Being an acquisitive company, there have been about 9 acquisitions so far in the last five years, said Ajit Issac, CMD & CEO, Quess Corp.
As a debate continues about IPO- bound airline IndiGo doling out hefty dividend payouts to its promoters, markets regulator Sebi is mulling making it must for all listed companies to have a stated 'Dividend Policy'.
Compared to capital gains, dividends are relatively stable source of income for equity investors. India has seen emergence of dividend yield based exchange traded funds.
Currently the company has about two months of order-on-hand for scaffolding business said Sharad Saraf, MD, Technocraft Industries India.