The global technology leader, Infosys Limited has announced a higher dividend payout ratio together with a separate allocation of Rs 13,000 cr, to be distributed to share holders through a buyback or as dividends during the fiscal 2018, in an effort to buy peace with its shareholders and promoters..
The company made the announcement while declaring its results for the Q4-2016-17 and the full year. In the January – March quarter, Infosys Ltd reported a 0.7 per cent sequential rise in dollar revenue to USD 2.57 billion, nearly Rs. 17,000 crore, allowing it to end financial year 2016 -17 with a 7.4% growth and USD 10.21 billion in revenue.
The company’s board proposed a final dividend of Rs 14.75 per equity share for the fiscal 2017. The proposed dividend payout results in a cash outflow of Rs 4,078 crore, approx. The purpose behind share buyback is to improve the earnings per share (EPS) and to return leftover cash to shareholders. The EPS ratio of Infosys Ltd has increased 6.4 per cent to 62.80 in the fiscal 2017, from 59.03 during the fiscal year 2016.