DIVIDEND Declared 2024: Highest-ever cash reward announced by Midcap IT stock

dividend declared 2024: highest-ever cash reward announced by midcap it stock

DIVIDEND Declared 2024: Shares of midcap IT services firm Mphasis jumped more than 6 per cent in Friday’s session after the company posted its earnings for the January-March quarter. Along with its earnings scorecard, the IT company also announced a dividend for its shareholders.

At the time of writing this report, around 11:45 AM, Mphasis’ shares were trading at Rs 2,347.45 per share on NSE, up 5.30 per cent from its previous closing price.

Mphasis Dividend 2024 Announcement, Record Date

Mphasis has declared a dividend of Rs 55 per equity share on the face value of Rs 10 each.

“Recommendation of dividend of ₹ 55 /- per equity share of ₹10/- each for the year ended 31 March 2024, which is subject to approval of the shareholders at the ensuing Annual General Meeting,” the company said in its quarterly report filing with stock exchanges.

If approved, this will be the highest-ever dividend by the midcap IT company in its history. Mphasis has not fixed any record date for determining the eligibility of shareholders for the payment of its upcoming dividend.

Mphasis Dividend 2024 Payment Date

Mphasis announced that the dividend will be paid to shareholders within 30 days of the Annual General Meeting.

“The dividend, if declared at the ensuing Annual General Meeting of the Company, will be paid within 30 days of the Annual General Meeting, to those shareholders, whose bank account details are registered with the respective Depository participant(s) or with the Registrar and Share Transfer Agent of the Company,” Mphasis said.

Mphasis Dividend History, Yield

Mphasis has paid dividend total 20 times in its history, excluding the upcoming one. Last dividend, the company paid was in July 2023 – Rs 50 per equity share.

In 2022, the IT company paid a dividend of Rs 46. In 2021, it paid two dividends – Rs 27 and Rs 35. In 2020, it paid Rs 35 dividend.

At the current market price, Mphasis’ dividend yield stands at 2.34 per cent.

Mphasis Q4 Results 2024: Highlights

• Mphasis reported a 2.9% decrease in net profit at Rs 393.22 crore compared to Rs 405.31 crore in the previous year.
• Sequentially, profit increased by 5.2% from Rs 373.6 crore in the preceding quarter.
• Revenue from operations during the quarter declined by 1.5% to Rs 3,412 crore compared to Rs 3,361 crore in the same quarter last year.
• Sequentially, revenues fell by 2.2% from Rs 3,337.9 crore in the December quarter.
• For the full year ended March 2024, net profit declined by 5% to Rs 1554.82 crore from Rs 1637.92 crore in FY23.
• Revenues also dipped by 3.7% to Rs 13,278.52 crore in FY24 from Rs 13,798.5 crore last year.
• In FY24, the deal wins were at a total contract value (TCV) of $1.38 billion with 15 large deals and one large deal in Q4FY24.

Mphasis Q4 Results 2024: Management Speaks

“We are experiencing strong growth momentum in Artificial Intelligence (AI) powered deal archetypes, as we look to capture the enterprise demand for AI adoption. Our ability to orchestrate the ecosystem by bringing technology and people together to solve for customer needs strongly positions us for growth in FY 2025, while we continue to work around the uncertainties in the overall economic environment,” said Nitin Rakesh, chief executive officer, and managing director at Mphasis.

Mphasis FY25 Guidance

Chief Executive Officer (CEO) Nitin Rakesh & Chief Financial Officer (CFO) Manish Dugar of Mphasis, said that they are “well placed” to capture growth over “next 12-18 months.”

• Mphasis expects that its revenue growth for the fiscal year 2025 will outperform industry standards.
• The company aims to achieve an EBIT (earnings before interest and taxes) margin ranging between 14.6% and 16.0% in FY25.
• During the fourth quarter, there was a significant uptick in deals ranging from $0 to $10 million.
• The pipeline of deals has grown by 5% year-on-year, with particular emphasis on artificial intelligence (AI) led solutions.
• The integration of Silverline, a company Mphasis acquired, has been completed, and the company is progressing as expected in terms of scaling up its operations.

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