Infosys net profit rises by 17.5% to `5,076 crore in Q4

Infosys’ Board approves up to Rs 9,200 cr buyback plan

NEW DELHI: IT services major Infosys on Wednesday posted a 17.5 per cent rise in net profit to Rs 5,076 crore for the March quarter, and announced up to Rs 9,200 crore buyback offer at a maximum price of Rs 1,750 per share.

The Bengaluru-based company’s net profit (after minority interest) was Rs 4,321 crore in the January-March 2020 quarter.

Its revenue grew 13.1 per cent to Rs 26,311 crore in the March 2021 quarter from Rs 23,267 crore in the year-ago period, Infosys said in a regulatory filing.

The company’s FY21 net profit was up 16.6 per cent to Rs 19,351 crore, while revenue was higher by 10.7 per cent to Rs 1,00,472 crore compared to the previous fiscal.

Infosys expects FY22 revenue to grow 12-14 per cent in constant currency.

The Board has recommended a capital return of Rs 15,600 crore, including a final dividend of Rs 6,400 crore and open market buyback of shares of Rs 9,200 crore, it said.

“Large deal TCV for FY21 peaked to an all-time high of $14.1 billion, with 66 per cent being net new. Operating margin for the year expanded by 3.2 per cent and Free Cash Flows increased by 44.4 per cent,” Infosys added.

The Board has recommended a final dividend of

Rs 15 per equity share for the financial year ended March 31, 2021.

Moreover, Infosys on Wednesday said its Board has approved up to Rs 9,200-crore buyback plan, wherein the IT major will buy back shares at a maximum price of Rs 1,750 apiece.

The buyback is part of the Bengaluru-based company’s capital return of Rs 15,600 crore, which also includes a final dividend of Rs 6,400 crore.

The shares will be bought back via the open market route through the Indian stock exchanges, a regulatory filing said on Wednesday.

From FY20, Infosys had enhanced its capital allocation plan and said it will return 85 per cent of free cash flow cumulatively over five years via buyback and dividends.

“We’ve declared Rs 6,400 crore of dividend and Rs 9,200 crore in the buyback. Our cumulative payout for FY21 and FY20, which are the first two years of the capital allocation policy, we would have paid out 83 per cent of the 85 per cent. So in that sense, I think this is completely in line with our policy and that’s what the board also considered when deciding the amount of buyback,” Infosys Chief Financial Officer Nilanjan Roy told reporters.

Elaborating on capital allocation exercise, Infosys statement said for FY 21, its board has recommended a final dividend of Rs 15 per share, and that together with the interim dividend of Rs 12 per share already paid, the total dividend per share for FY21 will amount to Rs 27, which is a 54 per cent increase over FY20.

American Depositary Shares holders are permitted to convert their ADS into equity shares and subsequently opt to sell such equity shares on the Indian stock exchanges during the buyback period, the filing said.