India's second largest IT company, Infosys is coming up with huge rewards in the form of dividends and buyback if be the case. At the latest, to exit the FY24 earning year, Infosys has announced a final dividend of Rs 20 per share and a special dividend of Rs 8 per share. This IT player has a long history of rewarding investors with massive bonuses and dividends.
Infosys Upcoming Dividend:
On April 18, Infosys recommended a final dividend of Rs 20/- per equity share for the financial year ended March 31, 2024, and additionally a special dividend of Rs 8/- per equity share. The record, ex-dividend, and payment date for the same will be announced in due course.
The record date for the Annual General Meeting and payment of final dividend and special dividend is May 31, 2024. The dividend will be paid on July 1, 2024.
Earlier for FY24, the company paid an interim dividend of 360% amounting to Rs 18 per share.
More Rewards By Infosys Ahead:
Infosys on Thursday further announced that it expects to continue its policy of returning approximately 85% of the Free Cash Flow cumulatively over 5 years through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any. Under this policy, the Company expects to progressively increase its annual Dividend Per Share (excluding special dividends if any).
Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividends and buybacks include applicable taxes.
Jayesh Sanghrajka, CFO said, "Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle. Consistent with giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85% over the next 5 years and progressively increase annual Dividend Per Share."
Hence, more buybacks and dividends are expected on a semi-annual basis.
He added, "Operating margin expansion in the medium-term and improving cash generation continue to remain our priorities underpinned by early success in Project Maximus."
Infosys Dividend History:
As per Trendlyne data, Infosys has delivered a whopping 49 dividends since October 2000. But its highest dividend payout is of Rs 115 per share which was a special dividend in the year 2004. which is also the same year Infosys made its highest and first bonus issuance.
In 2023, Infosys paid up a 710% dividend valuing to Rs 35.5 per share.
In 20 years Infosys has delivered a humungous 44 dividends, totalling Rs 778.75 dividend per share to date. This is a cumulative amount. Also, on average, Infosys' dividend payout is Rs 17.7 per share. The highest dividend payout was Rs 115 per share in May 2004, while the lowest payout was Rs 4 in January 2019.
Infosys Bonus Issue:
This tech biggie is also a reward of free bonus shares. Its bonus issuance of 3:1 in July 2004, meaning, 3 bonus shares were distributed on 1 existing share to investors. This followed a series of more bonuses.
Infosys has delivered 1:1 bonus shares each in July 2006, December 2014, June 2015, and September 2018.
In total, Infosys carried five bonus issues. But it has paid a total of 7 bonus shares free of cost to its investors on their existing per share.
Infosys Q4, FY24 Earnings:
In Q4FY24, Infosys posted a consolidated net profit of Rs 7,975 crore, before minority interest, registering a growth of 30% YoY and 30.5% QoQ. Coming to the top-line front, however, consolidated revenue dipped by 2.3% sequentially but marginally up by 1.3% YoY to Rs 37,923 crore. In constant currency, revenue dipped by 2.2% QoQ and was flat on a year-on-year basis.
Infosys said that it delivered $18.6 billion in FY24 revenues with a growth of 1.4% in constant currency and an operating margin of 20.7%. Free Cash Flow was strong at $2,882 million, an increase of 13.7% over FY 23. Large deal TCV for FY24 was the highest ever at $17.7 billion, with 52% being net new.
For the financial year 2024-25 guidance, Infosys estimates revenue growth of 1%-3% in constant currency, while operating margin is at 20%-22%.
On BSE, Infosys' share price stood at Rs 1420.55 apiece, up by 0.41% with a market cap of Rs 5,89,651.48 crore. On the current market price, Infosys has a dividend yield of 2.4%.
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