Infosys on Thursday announced an interim dividend of Rs 21 per share for the financial year 2024-25. This is the first interim dividend for the ongoing financial year. The IT major fixed October 29, as a record date and November 8, 2024 as a payout date for the dividend.
“The board announced an interim dividend of Rs 21 per share, 16.7 per cent increase from last year,” Jayesh Sanghrajka CFO at Infosys said, while also announcing Infosys’ Q2 results.
The Infosys board had in a meeting held on April 18 reviewed its capital allocation policy for the next 5 years from FY25–FY29; and suggested a continuity in its policy of returning approximately 85 per cent of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends, special dividends and/or share buybacks, subject to applicable laws.
On Thursday, Infosys raised its revenue growth guidance for FY25 to 3.75-4.50 per cent in constant currency terms, while keeping its operating margin guidance unchanged at 20-22 per cent.
Before today’s dividend announcement, the IT major had announced a final dividend of Rs 20 and a special dividend of Rs 8 per share for FY24 . Infosys has declared a total dividend of Rs 46 for FY24. This included an interim dividend of Rs 18 per share that it announced post its second quarter results last year.
Infosys has been a consistent dividend payer, data compiled from corporate database AceEquity suggests. The second largest IT firm declared Rs 34 per share (Rs 16.50 interim, Rs 17.50 final) in total dividend, amounting to Rs 6,844.20 crore in FY23. This was against Rs 31 per share dividend in FY22, amounting to Rs 6,309 crore and Rs 27 per share dividend in FY21, totalling Rs 5,112 crore.
Infosys Q2 results
Meanwhile, Infosys said it delivered broad based growth performance with $4,894 million in Q2 revenues, up 3.1 per cent QoQ and 3.3 per cent YoY in constant currency terms.
Operating margin for Q2 stood at 21.1 per cent. Free cash flow for Q2 came in at $839 million, up 25.2 per cent year on year.
TCV of large deal wins stood at $2.4 billion, up 41 per cent.
“We had strong growth of 3.1% quarter-on-quarter in constant current in Q2. The growth was broad based with good momentum in financial services. This stems from our strength in industry expertise, market leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us”, said Salil Parekh, CEO and MD.
