Dividend payout ratio enhanced up to 20% of PAT
Hyderabad, India, October 27th, 2011: Infotech Enterprises Ltd, a leading Global Engineering Services company, announced declaration of Interim Dividend to all its shareholders for the Financial Year 2011-12. In addition to declaring an interim dividend of 25%, the payout ratio has been enhanced up to 20% of the PAT on consolidated basis.
Infotech Enterprises has declared an interim divided of 25% for the Financial Year 2011-12 as against a final dividend of 25% for the Financial Year 2010-11. As opposed to an average of 10% payout ratio maintained in the past, the board has decided to enhance the payout ratio up to 20% of the PAT on consolidated basis. This interim dividend of 25% would earn Rs. 1.25 per share on the face value of Rs. 5. Infotech had issued 1:1 Bonus earlier in June 2010.
Commenting on the declaration of Interim Dividend, Mr. B.V.R. Mohan Reddy, Chairman and Managing Director, Infotech Enterprises Ltd said, “The decision to declare an interim dividend with an enhanced payout ratio is a reflection of the company’s business confidence and its performance. The payout ratio is now consistent with the average of peer group companies. We have declared this interim dividend to meet the expectations of our investors.”
Infotech posted revenues of Rs. 3,726.0 million for the quarter ended September 2011 posting a growth of 7.5% Quarter on Quarter (Rs. 3466.7 million for Q1-FY 11-12) and 26% growth Year on Year (Rs. 2954.7 million for Q2 – FY 10-11). Infotech improved on its operating margin to 15.7% for the quarter, an increase of 14.5% over the previous quarter. The Profit after Tax stood at Rs. 307.4 million for the quarter ended September 2011.
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