On Thursday, Infosys Ltd, an IT services provider, announced a consolidated net profit of 6,021 crore for the second quarter of the current fiscal year, ending in September 2022. This figure is 11% higher than the 5,782 crore reported in Q2 FY22, and it is also higher than the 57.82 billion rupees that analysts had expected. The will be rewarding dividend of 16.50 per share i.e. an increase of 10% over the interim dividend of 15 paid in FY 22. Interim dividends will amount up to Rs 6,940 crore.
The interim dividend record date has been set for October 28, 2022, with the dividend payment date set for November 10, 2022.
Infosys CFO Nilanjan Roy said, "In keeping with the capital allocation policy, the Board has announced an interim dividend of 16.50 per share, an increase of 10% above FY 22 interim dividend, and an open market share buyback of 9,300 crores." ( Read about Infosys Share Buyback)
Sales for Infosys increased by 23% year-over-year, reaching 36,538 crore from 29,602 crore (YoY).
The firm also announced it would be buying back shares for a total of 9,300 crore. The maximum buyback price is Rs. 1850, representing a premium of 30% over the previous trading day's closing price i.e. CMP .
As a result of this growth, Infosys is increasing its revenue outlook for FY23 to 15%-16%, up from 14%-16%. The company is also increasing its operating margin forecast to 21%-22%. In contrast to its competitors, Infosys has increased its prediction despite the difficult macro-environment and fears of an economic disaster in its major markets, the United States and Europe.
Tata Consultancy Services Ltd, the larger competitor, reported this week that clients are taking longer to decide on larger transactions, while Wipro, the smaller competitor, reported a negative prognosis for the current quarter.