DIVIDEND TREND IN IT INDUSTRY “ INFOSYS”

PROJECT REPORT

Submitted to: Submitted by:

Dr.Nandita Mishra. Rishi Kumar Vyas,

BM-014059.

INTRODUCTION

Infosys Ltd is an Indian multinational corporation that provides business consulting,information technology, software engineering and outsourcing services. It is headquartered in Bangalore, Karnataka.

Infosys is the third-largest India-based IT services company by 2014 revenues, and the fifth largest employer of H-1B visa professionals in the United States in FY 2013. On 31 March 2014, its market capitalisation was   188,510 crores ($31.11 billion), making it India's fifth largest publicly traded company.

Infosys was co-founded in 1981 by Narayan Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after they resigned from Patni Computer Systems

The company was incorporated as "Infosys Consultants Pvt Ltd." with a capital of Rs. 10,000 (roughly $250) in Model Colony, Pune as the registered office.

It changed its name to "Infosys Technologies Private Limited" in April 1992 and to "Infosys Technologies Limited" when it became a public limited company in June 1992. It was later renamed to "Infosys Limited" in June 2011.

Infosys has a global presence with 72 offices and 94 development centers in the United States, India, China, Australia, Japan, Middle East, and Europe.

Products and Services:

It provides software development, maintenance and independent validation services to companies

in banking, finance, insurance, manufacturing and other domains.

One of its known products is Finacle which is a universal banking solution with various modules for

retail and corporate banking.

EMPLOYEES:

Infosys has a total of 160,405 employees as of 31 March 2014, of which 34.7% were women. Its

workforce consists of employees representing 89 nationalities working from 32 countries.[38] Out of its

total workforce, 79% are software professionals, 15% are working in its BPO arm and remaining 5%

work for support and sales

LIST OF CEO’s:

N.R.NARAYANA MURTY 1981-2002

NANDAN NILEKANI 2002-2007

S GOPALAKRISHNAN 2007-2011

S.D.SHIBULAL 2011-2014

VISHAL SIKKA 2014-TILL DATE

Dividend Summary

For the year ending March 2014, Infosys has declared an equity dividend of 1260.00% amounting to Rs 63 per share. At the current

share price of Rs 1964.80 this results in a dividend yield of 3.21%.

The company has a good dividend track report and has consistently declared dividends for the last 5 years.

* As per the Profit & Loss account

Dividend DeclaredAnnouncementDate

EffectiveDate

DividendType

Dividend(%)

Remarks

28-08-14 16-10-14 Interim 600.00 Rs.30.0000 per share(600%)Interim Dividend

15-04-14 29-05-14 Final 860.00 Rs.43.0000 per share(860%)Final Dividend

26-09-13 17-10-13 Interim 400.00 Rs.20.0000 per share(400%)Interim Dividend

12-04-13 30-05-13 Final 540.00 Rs.27.0000 per share(540%)Final Dividend

24-09-12 18-10-12 Interim 300.00 Rs.15.0000 per share(300%)Interim Dividend

13-04-12 24-05-12 Final 640.00 Rs. 22.00 per share (440%) Final Dividend & Rs.10.00 per share (200%) Special Dividend

22-09-11 20-10-11 Interim 300.00 -

15-04-11 26-05-11 Final 400.00 -

29-09-10 21-10-10 Interim 800.00 Rs.10.00 per share(200%)Interim Dividend & Rs.30.00 per share(600%)Special Dividend.

13-04-10 26-05-10 Final 300.00 -

22-09-09 15-10-09 Interim 200.00 -

15-04-09 04-06-09 Final 270.00 -

25-09-08 16-10-08 Interim 200.00 -

15-04-08 29-05-08 Final 545.00 (Final Dividend 145% + Special Dividend 400%)

26-09-07 18-10-07 Interim 120.00 -

13-04-07 06-06-07 Final 130.00 AGM

28-09-06 19-10-06 Interim 100.00 -

14-04-06 25-05-06 Final 770.00 Silver Jubilee special dividend of Rs. 30 per share (600% on par value of Rs. 5 per share) & final dividend of Rs. 8.50/- per share (170% on an equity share par value Rs. 5/-).

23-09-05 17-10-05 Interim 130.00 -

14-04-05 01-06-05 Final 130.00 Final dividend of Rs. 6.50 per share (130% on an equity share par value Rs. 5/-).

01-10-04 18-10-04 Interim 100.00 (100% on a par value of Rs.5/- per share)

13-04-04 26-05-04 Final 2,300.00 Final dividend of Rs. 15/- per share (300% on an equity share par value Rs. 5/-) & Special one-time dividend of Rs. 100/- per share (2000% on an equity share par value of Rs. 5/-). (Revised)

17-09-03 16-10-03 Interim 290.00 -

10-04-03 28-05-03 Final 290.00 AGM & Dividend

30-09-02 30-10-02 Interim 250.00 -

10-04-02 21-05-02 Final 250.00 Final dividend of Rs 12.50 for each share of par value of Rs 5 per share

05-10-01 18-10-01 Interim 150.00 -

11-04-01 27-04-01 Final 150.00 -

10-10-00 25-10-00 Interim 50.00 -

PROFIT & LOSS ACCOUNT(2005-2010):

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 44,341.00 36,765.00 31,254.00 25,385.00 21,140.00

Excise Duty 0.00 0.00 0.00 0.00 0.00

Net Sales 44,341.00 36,765.00 31,254.00 25,385.00 21,140.00

Other Income 2,576.00 2,298.00 2,313.00 1,147.00 967.00

Stock Adjustments 0.00 0.00 0.00 0.00 0.00

Total Income 46,917.00 39,063.00 33,567.00 26,532.00 22,107.00

Expenditure

Raw Materials 0.00 0.00 0.00 0.00 22.00

Power & Fuel Cost 0.00 0.00 0.00 0.00 0.00

Employee Cost 24,350.00 19,932.00 15,481.00 12,464.00 10,356.00

Other Manufacturing Expenses 3,990.00 2,969.00 3,947.00 3,196.00 1,993.00

Selling and Admin Expenses 0.00 0.00 0.00 0.00 992.00

Miscellaneous Expenses 3,474.00 2,849.00 1,765.00 1,311.00 415.00

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 31,814.00 25,750.00 21,193.00 16,971.00 13,778.00

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 12,527.00 11,015.00 10,061.00 8,414.00 7,362.00

PBDIT 15,103.00 13,313.00 12,374.00 9,561.00 8,329.00

Interest 0.00 0.00 0.00 0.00 2.00

PBDT 15,103.00 13,313.00 12,374.00 9,561.00 8,327.00

Depreciation 1,101.00 956.00 794.00 740.00 807.00

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 14,002.00 12,357.00 11,580.00 8,821.00 7,520.00

Extra-ordinary items 0.00 0.00 0.00 0.00 0.00

PBT (Post Extra-ord Items) 14,002.00 12,357.00 11,580.00 8,821.00 7,520.00

Tax 3,808.00 3,241.00 3,110.00 2,378.00 1,717.00

Reported Net Profit 10,194.00 9,116.00 8,470.00 6,443.00 5,803.00

Total Value Addition 31,814.00 25,750.00 21,193.00 16,971.00 13,756.00

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 3,618.00 2,412.00 2,699.00 3,445.00 1,434.00

Corporate Dividend Tax 615.00 403.00 438.00 568.00 240.00

Per share data (annualised)

Shares in issue (lakhs) 5,714.03 5,742.36 5,742.30 5,741.52 5,738.25

Earning Per Share (Rs) 178.40 158.75 147.50 112.22 101.13

Equity Dividend (%) 1,260.00 840.00 940.00 1,200.00 500.00

Book Value (Rs) 736.64 627.95 518.21 426.73 384.02

This data can be easily copy pasted into a Microsoft Excel sheet

Infosys « Next Years Previous Years »

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '09 Mar '08 Mar '07 Mar '06 Mar '05

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 20,264.00 15,648.00 13,149.00 9,028.00 6,859.66

Excise Duty 0.00 0.00 0.00 0.00 0.00

Net Sales 20,264.00 15,648.00 13,149.00 9,028.00 6,859.66

Other Income 502.00 683.00 379.00 144.00 172.79

Stock Adjustments 0.00 0.00 0.00 0.00 0.00

Total Income 20,766.00 16,331.00 13,528.00 9,172.00 7,032.45

Expenditure

Raw Materials 20.00 18.00 22.00 16.00 13.55

Power & Fuel Cost 125.00 106.00 88.00 62.00 40.20

Employee Cost 9,975.00 7,771.00 6,316.00 4,274.00 3,183.25

Other Manufacturing Expenses 1,697.00 1,443.00 1,290.00 792.00 563.47

Selling and Admin Expenses 1,367.00 1,214.00 1,050.53 773.49 697.15

Miscellaneous Expenses 172.00 132.00 156.47 120.51 35.84

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 13,356.00 10,684.00 8,923.00 6,038.00 4,533.46

Mar '09 Mar '08 Mar '07 Mar '06 Mar '05

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 6,908.00 4,964.00 4,226.00 2,990.00 2,326.20

PBDIT 7,410.00 5,647.00 4,605.00 3,134.00 2,498.99

Interest 2.00 1.00 1.00 1.00 1.09

PBDT 7,408.00 5,646.00 4,604.00 3,133.00 2,497.90

Depreciation 694.00 546.00 469.00 409.00 268.22

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 6,714.00 5,100.00 4,135.00 2,724.00 2,229.68

Extra-ordinary items -1.00 0.00 -5.00 0.00 -4.59

PBT (Post Extra-ord Items) 6,713.00 5,100.00 4,130.00 2,724.00 2,225.09

Tax 895.00 630.00 352.00 303.00 325.30

Reported Net Profit 5,819.00 4,470.00 3,783.00 2,421.00 1,904.38

Total Value Addition 13,336.00 10,666.00 8,901.00 6,022.00 4,519.91

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 1,345.00 1,902.00 649.00 1,238.00 309.80

Corporate Dividend Tax 228.00 323.00 102.00 174.00 42.17

Per share data (annualised)

Shares in issue (lakhs) 5,728.30 5,719.96 5,712.10 2,755.55 2,705.71

Earning Per Share (Rs) 101.58 78.15 66.23 87.86 70.38

Equity Dividend (%) 470.00 665.00 230.00 900.00 230.00

Book Value (Rs) 310.90 235.84 195.41 250.29 193.73

BALANCE SHEET(2005-2014):

This data can be easily copy pasted into a Microsoft Excel sheet

Infosys Previous Years »

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 286.00 287.00 287.00 287.00 287.00

Equity Share Capital 286.00 287.00 287.00 287.00 287.00

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 41,806.00 35,772.00 29,470.00 24,214.00 21,749.00

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 42,092.00 36,059.00 29,757.00 24,501.00 22,036.00

Secured Loans 0.00 0.00 0.00 0.00 0.00

Unsecured Loans 0.00 0.00 0.00 0.00 0.00

Total Debt 0.00 0.00 0.00 0.00 0.00

Total Liabilities 42,092.00 36,059.00 29,757.00 24,501.00 22,036.00

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 10,374.00 8,029.00 4,061.00 4,056.00 6,357.00

Less: Accum. Depreciation 4,642.00 3,576.00 0.00 0.00 2,578.00

Net Block 5,732.00 4,453.00 4,061.00 4,056.00 3,779.00

Capital Work in Progress 954.00 1,135.00 588.00 249.00 409.00

Investments 6,717.00 4,344.00 1,409.00 1,325.00 4,636.00

Inventories 0.00 0.00 0.00 0.00 0.00

Sundry Debtors 7,336.00 6,365.00 5,404.00 4,212.00 3,244.00

Cash and Bank Balance 24,100.00 20,401.00 18,057.00 13,665.00 929.00

Total Current Assets 31,436.00 26,766.00 23,461.00 17,877.00 4,173.00

Loans and Advances 7,873.00 6,330.00 6,296.00 5,347.00 4,201.00

Fixed Deposits 0.00 0.00 0.00 0.00 8,868.00

Total CA, Loans & Advances 39,309.00 33,096.00 29,757.00 23,224.00 17,242.00

Deferred Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 4,503.00 3,181.00 2,454.00 1,880.00 1,995.00

Provisions 6,117.00 3,788.00 3,604.00 2,473.00 2,035.00

Total CL & Provisions 10,620.00 6,969.00 6,058.00 4,353.00 4,030.00

Net Current Assets 28,689.00 26,127.00 23,699.00 18,871.00 13,212.00

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 42,092.00 36,059.00 29,757.00 24,501.00 22,036.00

Contingent Liabilities 1,020.00 1,693.00 1,024.00 1,016.00 295.00

Book Value (Rs) 736.64 627.95 518.21 426.73 384.02

Infosys« Next Years Previous Years »

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '09 Mar '08 Mar '07 Mar '06 Mar '05

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 286.00 286.00 286.00 138.00 135.29

Equity Share Capital 286.00 286.00 286.00 138.00 135.29

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 17,523.00 13,204.00 10,876.00 6,759.00 5,106.44

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 17,809.00 13,490.00 11,162.00 6,897.00 5,241.73

Secured Loans 0.00 0.00 0.00 0.00 0.00

Unsecured Loans 0.00 0.00 0.00 0.00 0.00

Total Debt 0.00 0.00 0.00 0.00 0.00

Total Liabilities 17,809.00 13,490.00 11,162.00 6,897.00 5,241.73

Mar '09 Mar '08 Mar '07 Mar '06 Mar '05

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 5,986.00 4,508.00 3,889.00 2,837.00 2,182.72

Less: Accum. Depreciation 2,187.00 1,837.00 1,739.00 1,275.00 1,005.82

Net Block 3,799.00 2,671.00 2,150.00 1,562.00 1,176.90

Capital Work in Progress 615.00 1,260.00 957.00 571.00 317.52

Investments 1,005.00 964.00 839.00 876.00 1,328.70

Inventories 0.00 0.00 0.00 0.00 0.00

Sundry Debtors 3,390.00 3,093.00 2,292.00 1,518.00 1,252.82

Cash and Bank Balance 805.00 657.00 680.00 544.00 268.15

Total Current Assets 4,195.00 3,750.00 2,972.00 2,062.00 1,520.97

Loans and Advances 3,303.00 2,804.00 1,241.00 1,308.00 1,030.29

Fixed Deposits 8,234.00 5,772.00 4,827.00 2,735.00 1,213.39

Total CA, Loans & Advances 15,732.00 12,326.00 9,040.00 6,105.00 3,764.65

Deferred Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 1,544.00 1,483.00 1,162.00 808.00 578.56

Provisions 1,798.00 2,248.00 662.00 1,409.00 767.48

Total CL & Provisions 3,342.00 3,731.00 1,824.00 2,217.00 1,346.04

Net Current Assets 12,390.00 8,595.00 7,216.00 3,888.00 2,418.61

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 17,809.00 13,490.00 11,162.00 6,897.00 5,241.73

Contingent Liabilities 347.00 603.00 670.00 523.00 289.87

Book Value (Rs) 310.90 235.84 195.41 250.29 193.73

PREFERENCE DIVIDEND:

MONTH REPORTED. NET PREFERENCE

PROFIT DIVIDENT2014 10194.00 O2013 9116.00 02012 8470.00 02011 6443.00 02010 5803.00 02009 5819.00 02008 4470.00 02007 3783.00 02006 2421.00 02005 1904.38 0

Observation:

The Reported net profit is following a increasing trend over the years from 2005 to 2014 but the share of profit that the company is sharing in then preference dividend is 0.

Reason:

A dividend that is accrued and paid on a company's preferred shares. In the event that a company do not pay dividends, company is going to the profit.

Equity dividend:

MONTH REPORTED. NET PROFIT

PREFERENCE DIVIDEND

EQUITY DIVIDEND (%)

2014 10194.00 0 1260.02013 9116.00 0 840.02012 8470.00 0 940.02011 6443.00 0 1200.02010 5803.00 0 500.02009 5819.00 0 470.02008 4470.00 0 665.02007 3783.00 0 230.02006 2421.00 0 900.02005 1904.38 0 230.0

Observation:

The Reported net profit is following a increasing trend over the years from 2005 to 2014 but the share of profit that the company is sharing in Equity dividend is following increasing trend.

Reason:

The annual cash flow that an equity investor receives after the investment is done in the company so as INFOSYS is doing well so the equity investors will invest more so accordingly INFOSYS needs to pay the equity dividend with respect to the reported net profit.

Corporate Dividend Tax :

MONTH REPORTED NET.PROFIT

CORPORATE DIVIDEND TAX.

2014 10194.0 6152013 9116.0 4032012 8470.0 4382011 6443.0 5682010 5803.0 2402009 5819.0 2282008 4470.0 3232007 3783.0 1022006 2421.0 1742005 1904.38 42.17

Observation:

The Reported net profit is following a increasing trend over the years from 2005 to 2014 but the share of profit that the company is sharing in Corporate Dividend Tax is increasing trend .

Reason:

A dividend tax is an income tax on dividend payments to the shareholders (stockholders) of a company.It will vary accordingly what amount of preference divided and equity dividend is paid to the shareholders of INFOSYS.