Infosys declares 400 percent special dividend

Infosys Technologies Ltd has declared a whopping special dividend of Rs.20 per share (400 percent on par value of Rs.5 per share) for fiscal 2007-08.
In a notification to the stock exchanges here Tuesday, the IT bellwether said the special dividend was being offered to celebrate achieving $1.12 billion (Rs.46.2 billion) net profit for the fiscal (FY 2008) under review.

"We crossed a significant milestone reaching $1 billion in net profit during the year (FY 2008). We also have maintained our margins during the year despite 11 percent appreciation in the rupee," Infosys chief financial officer (CFO) V Balakrishnan said in a statement.

"Our special dividend payment is to celebrate the achievement of $1 billion net income milestone and is in line with our desire to balance the cash required in the business with that of enhancing returns to our shareholders."

For the fiscal under review (FY 2008), the company's board of directors has recommended a final dividend of Rs.7.25 per share (145 percent on par) under the Indian accounting practice.

With an interim divided of Rs.6 per share (120 percent on par), declared in October 2007 at the end of first half (April-September, 2007), the total dividend will be Rs.13.25 (265 percent on par) for the entire fiscal (FY 2008).

"The board has decided to increase the dividend pay-out ratio to 30 percent of net profit effective fiscal 2009, an increase of 10 percent over the current financial policy to pay dividend up to 20 percent of net profit," Balakrishnan added.

Under the US accounting practice, special dividend will be $0.50 per ADS (American Depository Share) at Rs.40.02 per dollar.

Similarly, final dividend will be $0.18 per ADS and total dividend $0.33 per ADS, including an interim dividend of $0.15 per ADS.

Indo-Asian News Service