Mphasis increases dividend to ₹55 per share for FY24, dividend yield above industry average

Mphasis last paid a dividend in July 2023 of ₹50 per equity share, which was the highest until now.

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

The NSE-listed company, Mphasis, comfortably covered its dividend from its earnings from the last payment. This means, the company has reinvested a major portion of its profits to expand the business.

Dividend history

The Indian information technology MNC based in Bangalore has a long history of paying dividends. It has paid dividends 20 times in the past, barring the upcoming one.

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

The dividend increased from ₹17.00 annually in 2014 to ₹55.00 recently, reflecting a compound annual growth rate (CAGR) of around 12%.

Mphasis earnings results

In its Q4 results, 2024, Mphasis posted a 2.9% dip in net profit at ₹393.22 crore against ₹405.31 crore in the same quarter in 2023.

Its operational revenue soared by 1.51% to ₹3,412 crore from ₹3.361 in the corresponding quarter in 2023.

The IT major’s revenues dropped by 3.7% to ₹13,278.52 crore in FY24 from ₹13,798.5 crore the previous year. In FY24, the company secured deals worth ₹138 crore, including 15 large deals and one major deal in Q4FY24.

Although its stock declined 12.35% year-to-date, it soared 32.24% year-on-year. Its 52-week high price was ₹2,837.60, recorded on 19 February 2024, and the 52-week lowest was ₹1,807.60, recorded on June 26, 2023. Its previous close on June 24, 2024, is ₹2,394.20.

As for its revenue guidance for FY25, the company said it expects its revenue to grow for the fiscal 2025, outperforming industry standards. Mphasis targets an EBIT (earnings before interest and taxes) margin ranging between 14.6% to 16.0% in fiscal 2025.