The industry leader in technology, Infosys Ltd., announced a 30% increase in net profit at Rs 7,969 crore for the quarter that ended in March 2024 (Q4) compared to Rs 6,128 crore during the same period the previous year, despite a slightly lower operating margin.
With revenues of Rs 37,923 crore, the company reported growth of 1.3% over the previous year’s revenues of Rs 37,441 crore. The operating margin, which was 20.1%, decreased by 0.4% from the December quarter and by 0.9% year over year.
Additionally, Infosys cut its revenue growth estimate for FY25 by 1-3 percent from 4–7% percent a year earlier, emphasising that clients’ discretionary expenditure is still poor. US Depository Receipts for the corporation decreased 7% on the New York Stock Exchange.
The company’s board proposed an extra special dividend of Rs 8 per equity share and a final dividend of Rs 20 per equity share for the fiscal year that concluded on March 31, 2024.
Additionally, Infosys cut its revenue growth estimate for FY25 by 1-3 percent from 4–7% percent a year earlier, emphasising that clients’ discretionary expenditure is still poor. US Depository Receipts for the corporation decreased 7% on the New York Stock Exchange.
The company’s board proposed an extra special dividend of Rs 8 per equity share and a final dividend of Rs 20 per equity share for the fiscal year that concluded on March 31, 2024.
“Our unwavering focus on improving the working capital cycle led to the highest free cash flow of $848 million in Q4 over the previous 11 quarters,” the company said. The board has approved the capital allocation policy, which aims to provide shareholders with high and consistent returns. Under this policy, the firm anticipates returning 85% of its capital over the next five years and gradually increasing its annual dividend per share, according to CFO Jayesh Sanghrajka.
“We continue to prioritise operating margin expansion in the medium-term and improving cash generation, which is supported by our early success in Project Maximus,” the speaker stated.
Infosys reported net profit for FY 2024 of Rs 26,233 crore (Rs 24,095 crore), up 8.9%, and sales of Rs 153,670 crore (Rs 146,767 crore), up 4.7%.
The company stated that, subject to applicable laws and necessary approvals, it expects to continue its policy of returning roughly 85% of the free cash flow cumulatively over a 5-year period through a combination of share buybacks and special dividends or semi-annual dividends. This policy will take effect in FY 2025.
The firm anticipates gradually raising its yearly dividend per share (excluding of any special dividends) in accordance with this policy. According to the consolidated statement of cash flows created under the IFRS method, free cash flow is defined as net cash supplied by operating activities less capital expenditure.
Under the 2015 Stock Incentive Compensation Plan, the board also approved the yearly performance-based stock incentives for CEO Salil Parekh in the form of restricted stock units (RSUs), which cover the company’s equity shares with a market value of Rs 34.75 crore as of the grant date. Subject to meeting performance goals set by the board, this will vest after a year, according to the statement.
In the meantime, the corporation experienced its first YoY decline in headcount since 2001 in FY24. The corporation employed 317,240 people overall as of March 31, which is 25,994 fewer than in fiscal 2023. This stands in stark contrast to the 29,219 new hires the business made the year before, and it’s even more evident when contrasted to the net 54,396 employees in the 2022 fiscal year. In the March quarter, there were 5,423 fewer employees overall. Using FE
