Bengaluru: The city-based IT services major Infosys approved a Rs 9,200 crore share buy back plan and the final dividend of Rs 6,400 crore on Wednesday.
According to a press release by the company, the Board of Directors has recommended capital return of Rs 15,600 crore (app. USD 2.08 billion) including final dividend of Rs 6,400 crore (app. USD 0.85 billion) and open market buyback of shares of Rs 9,200 crore (app. USD 1.23 billion).
“Executing on our capital allocation policy, the company proposes to increase the total dividend per share by 54% over previous year and Buyback of Equity shares of up to ₹9,200 crore,” said Nilanjan Roy, the Chief Financial Officer (CFO) of the company.
Last October, the company announced Rs 12 per share interim dividend and with the latest announcement the total dividend per share reaches Rs 27 per share during 2020-21.
This is a 54 per cent increase over 2019-20, the statement added.
Shares buyback plan
The company announced its plan to buyback shares at a price not exceeding Rs 1,750 per share. However, this plan is subject to the approval of the annual general meeting (AGM).
"Buyback of Equity Shares, from the open market route through the Indian stock exchanges, amounting to Rs 9,200 crore..at a price not exceeding Rs 1,750 per share (Maximum Buyback Price)," the statement said.
17.5% growth in net profit in Q4
The company's net profit (after minority interest) was Rs 4,321 crore in the January-March 2020 quarter.
Its revenue grew 13.1 per cent to Rs 26,311 crore in the March 2021 quarter from Rs 23,267 crore in the year-ago period, Infosys said.
The company's FY21 net profit was up 16.6 per cent to Rs 19,351 crore, while revenue was higher by 10.7 per cent to Rs 1,00,472 crore compared to the previous fiscal.
Infosys expects FY22 revenue to grow 12-14 per cent in constant currency.
(With PTI Inputs)
