Infosys Q4 net up 3.5% at Rs3,097 cr; proposes 1:1 bonus issue

24 Apr 2015

Infosys Technologies, India's second-largest information technology company, has reported a 3.5-per cent increase in its net (post-tax) profit for the quarter ended 31 March 2015, at Rs3,097 crore, on revenues of Rs13,411 crore, which in turn grew 4.2 per cent compared to the year-ago quarter.

Infosys, which reported a net profit of Rs2,992 crore during the year-ago quarter, said net profit for the January-March 2015 quarter was up 4.7 per cent on a sequential basis.

The company's board at its meeting also recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date.

The board also decided to increase the dividend payout from 40 per cent to 50 per cent of post-tax profit effective fiscal 2015.

Earnings per share (EPS) for the January-March 2015 quarter stood at Rs27.10, showing a year-on-year growth of 3.5 per cent and a sequential growth of 4.7 per cent.

"We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning'', said CEO and MD Vishal Sikka.

''Our focused employee engagement initiatives over the last few months have resulted in containing employee attrition to one of the lowest in recent times. And our investments in innovation and in renewing our capabilities are helping to elevate our client relationships'', he added.

For the year ended 31 March 2015. Infosys reported a 15.8 per cent increase in its consolidated net profit at Rs12,329 crore while revenues for the year increased by 6.4 per cent year-on-year to Rs53,319 crore.

Earnings per share (EPS) on an annual basis stood at Rs107.88, showing a growth of 15.8 per cent from the previous financial year.

The board recommended a final dividend of Rs29.50 per share for fiscal 2015 (equivalent to Rs14.75 per share after 1:1 bonus issue, if approved by shareholders).

Infosys said its liquid assets, including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds stood at Rs32,585 crore as of 31 March 2015 as compared to Rs34,873 crore as of 31 December 2014 and Rs30,251 crore as of 31 March 2014.

''As we continue to pursue our dual strategy of renewing the core and innovating into new frontiers, we have witnessed strong client additions this quarter. We have also enhanced our investments in new technologies and education to foster a culture of learning and creativity,'' Infosys said in its earnings release.

Infosys expects its FY16 revenues to grow between 10 per cent and 12 per cent in constant currency terms.