Two days after it announced its Q4 earnings, shares of tech giant Infosys fell as much as 6 per cent on Monday in early trade, wiping nearly Rs. 15,000 crore off company’s market capitalisation. Infosys shares fell to Rs. 1,099 at day’s low as compared to its Friday’s close of Rs. 1,169 on BSE.
Earlier on Friday, Infosys rewarded its investors with a record 870 per cent aggregate dividend of Rs 43.50 per share of Rs 5 face value for fiscal 2017-18.
In a regulatory filing on the BSE, the firm said its board had agreed to pay out a total dividend of Rs 33.50 per share (670 per cent), including Rs 20.50 (410 per cent) final dividend and Rs 13 (260 per cent) interim dividend and a special dividend of Rs 10 per share (200 per cent).
Dividend pay-out includes Dividend Distribution Tax (DDT).
The company’s investors or shareholders are promoters, including their families, foreign and domestic institutional investors, employees with stock options and retail worldwide, as its scrip is listed and traded on Indian, European and American bourses.
Total dividend paid in previous fiscal (2016-17) was Rs 25.75 (515 per cent) per share, including Rs 14.75 (295 per cent) final and Rs 11 (220 per cent) interim.
As part of its capital allocation policy, the board has agreed to pay a whopping Rs 13,000 crore ($2 billion) to the shareholders through the special dividend amounting to Rs 2,600 crore ($400 million).
“The board has also identified Rs 10,400 crore ($1,600 million) to be paid out to investors for fiscal 2018-19 in a manner it will decide during this year,” said the company in a statement here.
On Friday, the company projected a robust revenue growth of 9 per cent in dollar terms for fiscal 2018-19 despite its net profit declining 28 per cent sequentially in the fourth quarter of 2017-18.
“Consolidated revenues are expected to grow 7-9 per cent in dollar terms and 8.2-10.2 per cent in rupee terms for fiscal 2018-19,” said the city-based IT firm in a regulatory filing on the BSE.
The revenue guidance is based on US dollar rate of Rs 65.18 on March 31. Operating margin is expected to be in 22-24 per cent range.
The outsourcing firm’s consolidated revenue for 2017-18 was Rs 70,522 crore in rupee terms and $10,939 million in dollar terms, which is 3 per cent and 7.2 per cent up over the corresponding revenues of 2016-17.
The company reported 28.1 per cent sequential decline in consolidated net profit to Rs 3,690 crore for the fourth quarter in rupee terms.
Consolidated revenue for the quarter under review was up 1.6 per cent sequentially to Rs 18,083 crore in rupee terms.
On yearly basis, net profit growth for Q4 was 2.4 per cent and revenue growth 5.6 per cent in rupee terms.
Under the International Financial Reporting Standards in dollar terms, consolidated net income also declined 28.1 per cent sequentially to $571 million but gross income was up 1.8 per cent sequentially to $2,805 million.
On yearly basis, net income, however, grew 5.3 per cent and gross income grew 9.2 per cent for the fourth quarter in dollar terms under the IFRS.
For the just-concluded fiscal (2017-18), consolidated net profit grew 11.7 per cent year-on-year to Rs 16,029 crore in rupee terms and 16.2 per cent to $2,486 million in dollar terms.
“Net profit for the year included positive impact of an advance pricing agreement with the US Internal Revenue Service in the third quarter,” said the company in a statement later.
Operating profit for the fourth quarter at Rs 4,472 crore grew 3.5 per cent sequentially and 6.2 per cent annually, while operating margin was up fractionally to 24.7 per cent from 24.3 per cent in the third quarter.
Operating profit for the fiscal at Rs 17,148 crore grew 1.5 per cent over last year, while operating margin for the year was 24.3 per cent.
Digital offerings contributed 25.5 per cent ($2.79 billion) to the annual revenue of $10,939 million.
“Our robust performance is a reflection of the impact we have on our clients and the dedication of employees,” said Infosys Chief Executive Salil Parekh.
The company plans to scale its digital business, which contributed $2.8 billion in the fiscal, energise its clients’ core technology landscape via artificial intelligence and automation, re-skilling its techies an d expanding its localisation in Australia, Europe and the US.
“Navigating Your Next’ is our aspiration of how we will partner with each one of our clients,” said Parekh in a statement later.
Chief Operating Officer Pravin Rao said revenue productivity per employee was stable during the year as the benefits of automation and newer services kicked in.
“During the fourth quarter, we provided highest variable pay-outs in many years. We will be rolling out compensation increases for a large part of our workforce from April 1,” he said.
Infosys will hold a meeting with market analysts in Mumbai on April 23 to brief about its business operations.
(With inputs from IANS)