Dividend Alert: Second-worst performer on the Nifty IT in 2024 declares its best ever payout

Dividend Alert: Second-worst performer on the Nifty IT in 2024 declares its best ever payout

Shares of Mphasis Ltd. will be in focus on Friday after the company announced a final dividend of ₹55 per share, alongside its March quarter results.

The dividend announcement is subject to shareholder approval at the ensuing annual general meeting (AGM) of the company. Mphasis will hold its Annual General Meeting on July 25, 2024. In case shareholders approve the dividend recommendation, the dividend will be paid within 30 days of the same.

Record date for the dividend announcement is yet to be determined.

This is also the highest ever dividend payout that the company has declared. Last year, the company had announced a dividend of ₹50 per share.

For the March quarter, Mphasis reported a constant currency revenue growth of 2.1% sequentially, which was a multi-quarter high.

EBIT margin also remained unchanged at 14.9% but was marginally below expectations of 15.1%.

However, new deal wins at $177 million, a decline of 27% sequentially and 43% from last year, were weak. The 12-month Total Contract Value (TCV) is up only 5% from last year.

Currently, Mphasis has cash on the books worth ₹3,906 crore.

Mphasis is the second-worst performing stock on the Nifty IT index for 2024 with shares declining 19% so far. It is second only to LTIMindtree, whose shares have dropped over 25%. The Nifty IT index itself is down 5.5% so far this year.

Shares of Mphasis ended 0.4% lower on Friday at ₹2,235.