News

Published: October 17, 2024
Updated: October 17, 2024

Infosys Declares ₹21 Per Share Dividend: Key Dates, Dividend History, and Q2 Performance

Infosys Announces Interim Dividend for FY25

Infosys, India’s second-largest IT services firm, declared an interim dividend of ₹21 per share for the financial year 2024-25. This is the first interim dividend announced for FY25, showing a 16.7% increase compared to the previous year. The record date for this dividend has been set as October 29, 2024, with the payout scheduled for November 8, 2024.

Dividend History and Policy

Infosys has a strong track record of rewarding its shareholders through regular dividends. In FY24, the company distributed a total dividend of ₹46 per share, which included an interim dividend of ₹18 and a final dividend of ₹20, along with a special dividend of ₹8. The IT major declared ₹34 per share in FY23, ₹31 per share in FY22, and ₹27 per share in FY21. The company's capital allocation policy, reviewed in April 2024, outlines a plan to return approximately 85% of free cash flow to shareholders over the next five years (FY25-FY29). This will be done through semi-annual dividends, special dividends, and share buybacks, in line with regulatory guidelines.

Revenue Growth and Q2 Results

In its second-quarter results for FY25, Infosys reported revenues of $4,894 million, marking a 3.1% quarter-on-quarter (QoQ) growth and a 3.3% year-on-year (YoY) increase in constant currency terms. The company’s operating margin for the quarter stood at 21.1%, while free cash flow surged 25.2% year-on-year to $839 million. Infosys also raised its FY25 revenue growth guidance to 3.75-4.50% in constant currency, maintaining its operating margin target at 20-22%. The company’s large deal wins in Q2 had a total contract value (TCV) of $2.4 billion, reflecting a significant 41% increase.

CEO’s Remarks on Q2 Performance

Salil Parekh, CEO and MD of Infosys, expressed optimism about the company's performance, noting that the growth was broad-based across different sectors, especially financial services. He credited the strong momentum to Infosys' leadership in cloud solutions through its Cobalt platform and advancements in generative AI with Topaz. These innovations have strengthened client partnerships and positioned Infosys as a preferred choice for technology solutions. With a solid dividend policy and continuous growth in revenue, Infosys continues to offer strong returns to its shareholders. The company’s focus on innovation and strategic deal wins positions it well for future growth, with expectations of further success in the upcoming financial quarters.