Infosys approves buyback of shares worth up to ₹8,260 crore
The company has revised upwards its FY2018-19 revenue guidance in constant currency to 8.5-9 per cent.
Infosys’ consolidated net profit year-on-year fell 29.62 per cent to ₹ 3,610 crore for the three months ended December on revenue of ₹22,153 crore as its board cleared a buyback of equity shares worth ₹8,260 crore at a price not exceeding ₹800 per share.
The decline in net profit came despite a 33.1% growth in digital revenues at $942 million. The country’s second largest software exporter raised the full-year revenue guidance in constant currency upward to between 8.5 per cent and 9 per cent.
Operating margin guidance was also retained at between 22 per cent and 24 per cent. The Bengaluru-based company announced a special dividend of ₹4 per share.
As the dollar to rupee exchange rate fluctuated from April 2018 — when the capital allocation policy was announced — the total capital allocation in dollar terms amounts to $1,872 million, according to a company statement.
“Volume growth was strong and revenue productivity was stable despite Q3 being a seasonally weak quarter. We had good growth across geographies and large business segments”, said Pravin Rao, chief operating officer. “Attrition declined during the quarter and we are continuing on the path of increased interventions and employee engagements to reduce it further.”
Jayesh Sanghrajka, an interim chief financial officer said: “We saw significant currency volatility during the quarter and managed it effectively by our hedging strategy. Cash generation was strong during the quarter. Executing on the capital allocation strategy announced in April 2018, we have announced a share buyback program and a special dividend.”
The board approved the re-appointment of Kiran Mazumdar-Shaw as the Lead Independent Director from April 1, 2019.
“Kiran has been a pillar of strength to the board, especially over the last eighteen months as we steered the company to stability and growth.,” said Nandan Nilekani, Chairman of the board. “As chair of the Nominations & Remuneration Committee, she played a critical role in the CEO and CFO selection process. Her continuity, experience and insights are greatly valued by the Board as it guides the company in executing its strategy in the coming years.”
The board also approved the grant of restricted stock units to Salil Parekh, CEO and managing director, U.B.Pravin Rao, chief operating officer, and other key management personnel and employees.
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