Even after paying dividend, Infosys has plenty of cash left

BANGALORE: Even after spending Rs 861 crore for an interim dividend in the second quarter, India's second-largest information technology company Infosys Technologies still has about Rs 22,800 crore left in the bank, whichcan be used for acquisitions or share buybacks.

Cash assets of Infosys, which was about $3.8 billion at the end of the second quarter in 2011, increased to $4.3 billion as of September 30, 2012. This is after spending about Rs 1,930 crore ($350 million) for acquiringSwiss consultancy Lodestone.

Infosys declared an interim dividend of Rs 15 per ADS (equivalent to an interim dividend of $0.28 per ADS) at the prevailing exchange rate of Rs 53 per dollar). The record date for the dividend is October 19, 2012.

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The last time Infosys gave a dividend was in April. The IT firm gave a final dividend of Rs 22 per share for fiscal 2011-12, which was 440 per cent over its par value of Rs 5 a share. It also gave a special dividend of Rs 10.

Infosys has been awarding dividends in the last five years regularly. Prior to 2012, the company had given an interim dividend in 2011. In 2010, it had awarded a 200 per cent interim dividend and a 600 per cent special dividend.



The regular dividends have kept the Infosys shares in demand, even as analysts have kept a target price of Rs 1,900 on the stock.