In a bid to reward shareholders, IT majors TCS as well as Infosys have announced final dividends for the year ended March 2019, after a year of strong performance.
In a bid to reward shareholders, IT majors TCS as well as Infosys have announced final dividends for the year ended March 2019, after a year of strong performance. Infosys has announced a final dividend of Rs 10.50 per equity share for the financial year ended March 31, 2019. “The book closure date for the purposes of the Annual General Meeting and payment of final dividend is June 15, 2019,” Infosys said in its press release. Notably, the dividend will be paid on June 25, 2019.
India’s most valued IT firm TCS has also announced a final dividend of Rs 18 per share. “We would like to inform you that at the Board Meeting held today, the Directors have recommended a Final Dividend of Rs 18 per Equity Share of ( Each of the Company which shall be paid/dispatched on the fourth day from the conclusion of the Annual General Meeting subject to approval of the shareholders of the Company,” TCS said in a press release.
Return of excess cash to shareholders has been an ongoing excercise in Indian IT industry, especially with tech giants Infosys, TCS and Wipro resorting to dividends and share buybacks in recent times. Notably, Wipro announced earlier this week that that its board will discuss buyback proposal on its meeting scheduled on April 16. According to norms, a buyback can be done only once in 12 months. Infosys had earlier in January this year approved a Rs 8,260 crore share buyback, the second successive share buyback in many years. In June last year, TCS had approved a massive Rs 16,000 crore share buyback.
Notably, Infosys shares have returned about 28% in the last one year while TCS shares have given about 26% in the same time frame. Both the shares have outperformed the Nifty in the last one year. Interestingly, shares of IT companies have outperformed markets in the past one year, with Nifty IT index rising about 24% as compared to 11% gain for the Nifty50 index.