Dividend is a form of incentive given by a listed company to the shareholders out of profits earned in a particular financial year. Infosys is said to be paying a massive dividend to its investors and most likely will announce its first interim dividend next week for FY23. The IT major will also announce its September 2022 quarter earnings. In FY22 alone, Infosys had paid a whopping 620% dividend to the shareholders.
on BSE, Infosys shares closed 1,451.75 each down 3.20 or 0.22%. The market cap of the company is approx. 6,10,871.36 crores.
Last month, in its regulatory filing, Infosys said “financial results and proposal for interim” DividendIf any, will be placed before the Board of Directors on October 13, 2022 for their approval.”
The board of the company will meet on October 12 and 13 to approve the financial results in Ind-AS for the quarter and half year ended September 30, 2022. Also, the board will first consider the interim dividend for FY23.
For the financial year FY22, Infosys paid an overall equity dividend of 620% to its shareholders 31 per share. For this financial year, the first interim dividend of 15 per share was declared on October 13, 2021, while the final dividend of 16 per share was declared on April 13, 2022.
At the current market price, Infosys’ dividend yield stands at over 2.1%.
Should you buy Infosys shares?
In their Technology Q2 Preview Report, Motilal Oswal’s Mukul Garg and Raj Prakash Bhanushali Research analysts expect good demand with good deal conversion from Infosys. In stablecoin terms, analysts expect the company to deliver USD revenue growth of 4.3% QoQ, although unfavorable cross-currency movements will drag down the reported growth.
However, analysts expect lower-than-expected margins as supply-side challenges remain high. Also, commentary on deal wins and margins will be an important watchdog for Infosys.
Motilal Oswal analysts have a ‘Buy’ recommendation on Infosys with a target price of Rs. 1,640 per.
Meanwhile, Jefferies said in its Q2 preview report on Infosys, “We expect 2QFY23 revenue growth to be strong at 4% QoQcc, driven by deal ramp-up and seasonal strength. We expect Ebit margins to be 30bps.” Will expand by QoQ, driven by pyramiding, operating leverage amid supply side pressures, higher costs and continued investment in growth, and pricing leverage. We expect Infosys to deliver on its 14-16% revenue growth guidance and 21- 23% margin guidance.
by Jefferies. Set a purchase recommendation with a target price of 1,700 each on Infosys.
In Q1FY23, Infosys delivered a strong performance in Q1 with year-on-year growth of 21.4% and 5.5% sequential growth in constant currency. In constant currency terms, year-over-year growth was in double digits across all business segments. Digital accounts for 61.0% of total revenue, growing at 37.5% in constant currency. Net hiring was strong at 21,171. Operating margin for the quarter was 20.1%, with free cash flow conversion accounting for 95.2% of net profit.
During Q1, Infosys reports 3.2% year-on-year growth in consolidated net profit 5,360 crore, while the revenue from operations was 34,470 crore is 23.6% higher annually.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.