Shares of Infosys Limited traded flat in the early hours of trading on April 19, as the company released the business and financial updates for the fourth quarter (financial year 2023-24).

In its recent regulatory filing, it said that regarding the letter dated March 15, 2024, it informed on the following major decisions made by the Board on April 17-18, 2024:

1. Financials comparing the fourth quarter of the financial year 2023-24 and FY 22-23.

The Company reported –

• Return on Equity (RoE) of 32.1% in Q4FY24 from 31.2% in Q4FY23.
• Revenues of Rs 37,923 crores in Q4FY24 against Rs 37,441 crores in Q4FY23.
• Operating Profit or Earnings before interest, tax, depreciation and amortisation (EBITDA) in the of Rs 7,621 crore in Q4FY4 as compared to Rs 7,877 crore in Q4FY23. (i.e. lowered by 3% in Q4FY24 from Q4FY23)
• Operating Margin of 20.1% in Q4FY24 as compared to 21% in Q4FY23.
• Other Income of Rs 2619 crore in Q4FY24 against Rs. 589 crore in the corresponding quarter of the previous year.
• Profit before tax (PBT) of Rs 10240 crore in Q4FY24 compared to Rs. 8466 crore in Q4FY23.
• Net Profit of Rs 7969 crore in Q4FY24 from Rs. 6128 crore in Q4FY23 (i.e. increased by 30% in Q4FY24)

The EBITDA and operating margin have lowered in the Q4FY24 as compared to the quarter in Q4FY23. However, the Revenue, Profit before tax and Net profit increased in Q4FY24 as compared to Q4FY23.

2. Dividend:

The Board has recommended a final dividend of Rs 20 per equity share for the financial year ending on March 31, 2024. An additional special dividend of Rs 8 per equity share will also be paid. The dividends will be paid on July 1, 2024.

3. Capital allocation policy:

Starting from the financial year 2025, the company intends to continue returning approximately 85% of the free cash flow cumulatively over 5 years. This will be accomplished through a combination of semi-annual dividends and/or share buyback/special dividends, subject to applicable laws and requisite approvals, if any. The company plans to progressively increase its annual Dividend Per Share (excluding special dividends, if any) as part of this policy. 

Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividends and buybacks include applicable taxes.

4. The Board also approved the incorporation of wholly-owned subsidiaries in Thailand, Oman, and France. Additional information required under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations will be disclosed in due course.

However, at 3:30 pm, the shares of Infosys closed 0.51% lower at Rs 1,411.95 on NSE.