The Hindu Business Line : Infosys may consider share split suggestion

THE Infosys Technologies AGM on Saturday saw shareholders proposing and seconding resolutions, waiving the reading of the auditors' report and even suggesting that the top management gives itself a raise, based on the company's performance.

The company reported a 52-per cent growth in net profits in fiscal 2005 at Rs 1,891.7 crore, while its revenues grew 47 per cent to Rs 7,129.65 crore, over the previous year.

The management presented to its shareholders the operational performance of the year, including the news that the company expects to cross the $2-billion revenue mark in 2006.

To a shareholder's suggestion that Infosys consider splitting its Rs 5 share into five with a face value of Re 1 each for its silver jubilee year this fiscal, the Chairman and Chief Mentor, Mr N.R. Narayana Murthy, said the suggestion was good and that the company's board members had their hearts in the right place - "with the less advantaged sections of society."

He also said the board would consider the suggestion.

Mr Narayana Murthy, said growth across the European market continued to be strong; the Asia Pacific market had an increasing share in revenues and that Infosys would scale operations in China rapidly.

Infosys' shareholders approved the proposed final dividend of Rs 6.50 a share (130 per cent on shares of par value Rs 5), taking the total dividend to Rs 11.5, amounting Rs 309.8 crore.

This includes the interim dividend of Rs 5, amounting Rs 133.93 crore.

The company, which has cash and cash equivalents of about Rs 2,998 crore, said it would consider returning a part of it to shareholders if the ROCE (return on capital employed) is at least twice the cost of capital, while also following the company policy of dividends below 20 per cent of the net annual income.

Dividends approved this year are about 18.48 per cent of PAT (profit after tax).

Cash will also be used for investment, expansion and acquisitions, according to Mr T.V. Mohandas Pai, CFO. But the company management declined to say when the acquisitions would be made.

The company said it was hiring significantly. Last fiscal, it received over 14 lakh applications.

Nearly 40,000 people were interviewed and about 15,000 were hired, according to Mr S. Gopalakrishnan, COO.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Disclosure norms for India Inc may be eased

Govt wary of allowing grocery shops to hawk OTC drugs

Move to curb advertising of prescription drugs

Infosys may consider share split suggestion

Wealth management by banks poised to grow

Govt to consider all stakeholders' interest on board composition norms