The shareholders meeting of PT Nippon Indosari Corpindo, Tbk (ROTI), dated May 19, 2016, decided to distribute a 20% dividend of net profit in 2015, that is, Rp 53.7 billion. This figure is less than 10% of the cash owned by ROTI as of March 31, 2016 which amounted to Rp 559.1 billion. In fact, cash flow from operating activities was as high as Rp 555.5 billion in 2015, and has reached Rp 157.7 billion in the first 3 months of 2016.
ROTI will still have more than Rp 200 billion even after deducting the planned Rp 350 billion capital expenditures by the end of 2016.
Investors are more appreciated when cash of this size is used optimally and not kept, so that it can generate an ROE greater than the recorded 23% in 2015.
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