680% Dividends In FY23: Tech Giant Infosys To Consider Interim Dividend For FY24, Q2 Result On October 12

Tech giant, Infosys will be announcing its quarterly earnings for the period ended September 30, 2023 (Q2FY24) on October 12. Alongside Q2 results, the company is also set to consider interim dividend for the fiscal year 2022-23, which will be very rewarding to shareholders. Infosys is among the high dividend-paying stocks. In FY23 alone, the company paid a huge 680% dividend.

In its regulatory filing, Infosys said, "The Board of Directors of the Company will be held on Wednesday and
Thursday, October 11 and 12, 2023 inter alia to:

1. Approve and take on record the audited consolidated financial results of the Company and its subsidiaries as per Indian Accounting Standards (INDAS) for the quarter and half year ending September 30, 2023;

2. Approve and take on record the audited standalone financial results of the Company as per INDAS for the quarter and half year ending September 30, 2023;

3. Approve and take on record the audited financial statements of the Company and its subsidiaries as per INDAS and IFRS for the quarter and half year ending September 30, 2023, and

4. Consider declaration of interim dividend, if any."

It added, "The financial results and proposal for interim dividend, if any, will be presented to the Board of Directors on October 12, 2023, for their approval."

In the June 2023 quarter, Infosys posted a consolidated net profit of Rs 5,945 crore, up by 10.9% YoY but declined by 3% QoQ. Revenue from operations stood at Rs 37,933 crore, registering a growth of 10% or 1.3%. In constant currency, the company's revenue growth stood at 4.2$ YoY and 1% sequentially. Its operating margin was at 20.8%.

During Q1 of FY24, Infosys revenues were under pressure in the North America region, especially after the banking crisis that hit in March 2023 with the scrapping of Silicon Valley Bank and Signature Bank. Infosys revenue by client geography in North America stood at 60.8%, down from 61% in Q4FY23 and 61.8% in Q1FY23.

Meanwhile, Infosys recorded a large deal TCV for the quarter at $2.3 billion, with a net new of 56.1%. While ROE improved by 180 bps to 32.8%. Attrition declined further to 17.3%.

Infosys FY24 revenue guidance was revised to 1.0%-3.5% and operating margin guidance was retained at 20%-22%.

On October 12, key things to watch in Infosys results would be its performance in the American region, deal wins, attrition rate, views on AI offering, management commentary, and change in FY24 guidance if any.

Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of its people work to amplify human potential and create the next opportunity for people, businesses and communities.

Infosys is the second largest IT firm in India in terms of market share after TCS. In the trading week from September 18 to 22, Infosys shares dipped by 1.3% on BSE. As of September 22, Infosys market cap is at Rs 6,20,893.53 crore at the closing price of Rs 1496 apiece on the exchange.

Coming to the dividend benefits, Infosys has a consistent track record of rewarding its shareholders with hefty dividends. In FY23, the company paid a dividend of 680% amounting to Rs 34 per share to investors. On the current price level, Infosy's dividend yield is at 2.27%.

As per Trendlyne data, since October 2000, Infosys has declared a whopping 48 dividends for shareholders. Further, it highlighted that the Infosys Relative Strength Index (RSI) is at 64.3, which is in the mid-range. However, the company's Money Flow Index (MFI) is at 83.1, and generally, MFIs above 80 are considered strongly overbought, implying some pullback possibility in the stock. Also, Infosys TTM PEG Ratio is at 2.3%, which is high in the industry, while beta 1-year is at very high volatility at 1.2. However, the company's Price Book Ratio is below the industry median, at 8.2.

As of the latest, Kotak Institutional Equities has recommended Buy on Infosys for a target price of Rs 1,710 apiece. Also, Motilal Oswal has maintained a buy for a target price of Rs 1,600 on the stock.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any.