Infosys announces Rs 21 per share dividend

Infosys on Thursday declared an interim dividend of ₹21 per share for FY25, marking a 16.7% increase from last year's interim dividend. The IT giant has set October 29 as the record date and November 8, 2024, as the payout date. This announcement coincided with the company's Q2 results release, where CFO Jayesh Sanghrajka emphasized the strong dividend growth.

Infosys has been a consistent dividend payer, aligning with its capital allocation policy that aims to return 85% of its free cash flow over a five-year period through semi-annual dividends, special dividends, or share buybacks. The company previously distributed a total dividend of ₹46 per share for FY24, including a final dividend of ₹20 and a special dividend of ₹8.

For FY25, Infosys also raised its revenue growth guidance to 3.75-4.50% in constant currency terms while maintaining its operating margin guidance at 20-22%. The company's Q2 performance showed solid progress, with revenues reaching $4,894 million, up 3.1% QoQ. Free cash flow grew significantly, up 25.2% year-on-year to $839 million, and large deal wins surged 41%, amounting to $2.4 billion.

CEO Salil Parekh attributed this growth to Infosys' expertise in financial services, cloud capabilities with Cobalt, and advances in generative AI through Topaz, highlighting the company’s strong market position and growing client partnerships.