Infy going all out in FY18 for buyback and dividend payout

Infosys has declared its Q4FY17 results on April 13. In FY18, the company will use 70 per cent of its free cash flows for paying dividends or buying back shares. Apart from that, it has decided to pay Rs 13000 crore to shareholders by way of dividend or buyback during FY18, subject to necessary approvals.

The markets were expecting a USD 2 billion (Rs 12873 crore) outlay through their earlier guidance and commentary. Infosys’ allocation includes buybacks and dividends. The allocated funds are insufficient as per various market experts. The company does not want to set very high expectations, but go along with the Street’s demands.

Among other IT peers, TCS' board in February approved a proposal to buy back upto 56.14 million equity shares of the company. The buy back at amount not exceeding Rs 16000 crore, was 2.85 per cent of the total paid-up equity share capital, at Rs 2850 per equity share.

HCL Technologies has announced Rs 3500 crore buyback plan, Wipro Rs 2500 crore and Mphasis’ buyback at 1103 crore.

The stock price of Infosys declined 2.83 per cent in early trade, and is trading at Rs 945.45 on an intraday basis.