IT major Infosys Ltd is all set to announce its quarterly results later today at around 3.45 pm. Along with its results, investors will be closely tracking any announcement on final dividend for the financial year FY2024-25.
Infosys has announced an interim dividend of Rs 21 per share for FY25 so far. The IT giant declared a total dividend of Rs 46 per share in FY24, amounting to Rs 7,455.40 crore. It announced dividend of Rs 34 per share in FY23, amounting to Rs 6,844.20 crore. This included an interim dividend of Rs 16.50 and final dividend of Rs 17.50 per share. In FY22, the IT major paid Rs 6,309 crore worth dividends, amounting to Rs 31 per share. In FY21, it declared Rs 27 per share dividend, totalling Rs 5,112 crore.
Infosys, in a meeting held on April 18, last year, reviewed its capital allocation policy for the five-year period from FY25 to FY29. The company maintained its approach of returning approximately 85 per cent of its free cash flow (FCF) over this period through a mix of semi-annual dividends, special dividends, and/or share buybacks, in compliance with applicable laws.
The board of India’s second-largest digital services and consulting firm would be announcing its decision at approximately 3:45 PM IST. The final dividend, if any, would be subjected to shareholders’ approval.
Analysts forecast that the Bengaluru-based IT firm, Infosys, may report a 15-18 per cent year-on-year (YoY) drop in net profit for the March quarter, attributed to wage hikes despite a 10 per cent growth in sales. On a quarter-on-quarter (QoQ) basis, market experts expect Infosys to lead the decline in sales among tier-1 IT firms in constant currency (CC) terms.
Nomura India expects Infosys to provide FY26 guidance of 2-5 per cent YoY sales growth in constant currency (CC) terms, with a stable EBIT margin of 20-22 per cent. The brokerage anticipates that the outlook on client discretionary spending, amid rising macro volatility in the US, as well as commentary on cost takeout projects and the BFSI vertical, will be closely watched.
IDBI Capital, on the other hand, projected a 17.7 per cent YoY decline in net profit to Rs 6,560 crore, despite a 9.8 per cent increase in revenue to Rs 41,632 crore. EBIT is expected to rise by 12.5 per cent YoY to Rs 8,574 crore, with margins expanding by 50 basis points YoY to 20.60 per cent, though slightly lower by 74 basis points sequentially due to wage hikes for junior employees.
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