Infosys says it'll hand shareholders $2bn
Its stock price then dipped
Infosys, Asia's second biggest software exporter, has promised shareholders it will increase its dividends and stock buybacks to $2bn this year.
Bloomberg reports that the company will start distributing as much as 70 per cent of its annual free cash flow. Infosys predicts revenue growth of between 6.5 and 8.5 per cent for the coming financial year.
Revenues for the financial year ending in March were $10.2bn, up 7.4 per cent year on year. Net profit of $2.1bn was up 4.3 per cent year on year.
In spite of this, the newswire noted that its share prices dipped by 2.9 per cent in early trading this morning.
"Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance. At the same time, we continued to see many positive signs of our strategy execution; our software-led offerings continued to show strong momentum and client success, with continued adoption of Mana, our AI platform," said CEO Dr Vishal Sikka in a canned statement.
The company highlighted cloud and data analytics as two particular areas that boosted the bottom line. ®