Infosys Ltd. announced an interim dividend of Rs 21 per equity share on Thursday.
The company has set Oct. 29 as the record date and Nov. 8 as a payout date for the dividend, according to an exchange filing on Thursday.
Infosys second quarter revenue grew 4.3% sequentially to Rs 40,986 crore in the three months ended September. This compares with the Rs 40,820 crore estimate by analysts tracked by Bloomberg.
The Bengaluru-based company reported a net profit of Rs 6,506 crore, indicating a 2.2% rise for the second quarter of the current financial year 2024. The analyst polled by Bloomberg estimated the profit at Rs 6,831 crore.
The EBIT of the IT firm surged to Rs 8,689 crore, noting a 4.7% growth, and its margin expanded to 21.2% for the July–September quarter of the fiscal 2025.
Management Comments
“We continue to focus on accelerating revenue growth with a sharp focus on margin performance. Operating margins for the quarter were at 21.1%, driven by continued benefits from value-based pricing and utilisation despite higher employee payouts," according to Jayesh Sanghrajka, chief financial officer at Infosys.
Sanghrajka also highlighted that the company's focus on cash generation resulted in another quarter of over 100% free cash flow conversion to net profits. “The board announced an interim dividend of Rs 21 per share, 16.7% increase from last year.”
Dividends Of Other IT Majors For Q2FY25
On Oct. 14, HCL Technologies Ltd. announced an interim dividend of Rs 12 per equity share of Rs 2 for each company. The dividend will be paid to the shareholders of the company on Oct. 30, and the record date for the same is set for Oct. 22.
Additionally, Tata Consultancy Services Ltd. has announced its second interim dividend of Rs 10 per equity share of Rs 1. The dividend will be paid to the shareholders of the company on Nov. 5. The record date for the interim dividend is set for Oct. 18.
Shares of Infosys closed 2.50% higher at Rs 1,968.10 apiece, compared to a 0.89% fall in the benchmark NSE Nifty.
The stock has risen 36.44% in the last 12 months and 28.29% year-to-date.
Out of 45 analysts tracking the company, 30 maintain a 'buy' rating, 10 recommend a 'hold' and five suggest a 'sell' according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 0.7%.
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