Infosys forecasts revenue rise, to pay shareholders a special dividend

IT firm Infosys forecast its revenue in the current fiscal year would rise by 6 to 8%.

Infosys on Friday forecast its revenue in the current fiscal year would rise by 6 to 8% as India’s second-biggest software services exporter said it would pay shareholders a special dividend.

Net profit for Infosys rose to ₹36.90 billion ($565.78 million) in the three months ended March 31, from ₹36.03 billion in the same period a year earlier. (Reuters file photo)

The results were the first for a full quarter under chief executive Salil Parekh who joined Infosys in January with the task of restoring growth and ensuring peace between Infosys founders and the board after an acrimonius spat last year.

The forecast for full-year revenue growth was slightly below brokerage firm Macquarie’s 6.5 to 8.5% forecast.

The IT firm said it would stick to its policy of returning up to 70% of its free cash, adding that it had identified up to ₹130 billion which would be paid to shareholders including a special dividend payout worth ₹26 billion .

Net profit rose 2.4% to ₹36.90 billion ($566 million) in the three months ended March 31, Infosys said.

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Eighteen analysts had on average expected net profit of ₹37.09 billion , according to Thomson Reuters data.

Infosys said its revenue from operations rose by 5.6% to ₹180.83 billion in the quarter.