Shares of Infosys Ltd, the second-largest domestic IT firm, will turn ex-dividend on Wednesday. The Bengaluru-based technology firm had announced an interim dividend of Rs 18 per share while announcing its September quarter results. Today is also the record date for the purpose of determining the name of the eligible Infosys shareholders, who will receive dividend. All eligible Infosys shareholders with their names in the list at the end of Wednesday would be eligible to receive dividend. The actual payout date is November 11.
In April, Infosys announced a final dividend of Rs 17.50 per share for FY23. Data compiled with corporate database AceEquity suggests Infosys has been a regular dividend payer. For FY23, Infosys announced Rs 34 per share in total dividend, amounting to Rs 6,844.20 crore. This was against Rs 31 per share dividend, amounting to Rs 6309 crore in FY22 and Rs 27 per share dividend, totalling Rs 5,112 crore.
Infosys has a policy of returning approximately 85 per cent of the free cash flow cumulatively through a combination of semi-annual dividends and/or share buyback and/or special dividends, subject to laws and requisite approvals.
Earlier this month, Infosys downgraded its upper limit of FY24 revenue guidance, for the second time, which weighed on the otherwise positive quarter for the Salil Parekh-led IT firm's results. For the quarter, Infosys reported its highest ever deal wins at $7.7 billion. Also, the IT firm announced margin improvement, That said, hopes of better earnings visibility could not materialise, denting hopes of a better second half of the financial year.
Analysts said domestic IT firms are strategically pivoting towards aggressive cost rationalisation, which is leading to margin improvement. But the cautious commentary post the second quarter results were similar to the June quarter, which disappointed investors a bit.