Infosys, one of the leading software companies of India, recoded a net annual profit of Rs 4,659 crores for the financial year 2007-2008. This was a growth of 20.82 % over the previous year 2006-2007, when the net annual profit was Rs 3,856 crores. The total consolidated income of Infosys rose from Rs 14,265 crores in 2006-2007 to Rs 17,396 crores in 2007-2008.
A final dividend of Rs 7.25 was declared by Infosys on shares of Rs. 5 per share (145% dividend). Furthermore, the company also declared a special dividend of Rs 20 per share, on shares with face value of Rs. 5 per share.
The special dividend has been announced to celebrate the achievement of one billion dollars of net profit during the financial year. The company has also decided that from the fiscal year 2009, the company would pay out 30% of net profits as dividends.
During the fourth quarter of 2007-2008, Infosys recorded a profit of Rs 1249 crores which was a growth of 9.2%. However this was much lower than the estimated profits of this period. According to analysts, the actual profits fell short of the estimated profits by Rs 1260 crores.
According to a survey by Infosys, the sharp difference between estimated and actual figures is due to the budget cut by US customers of the company who account for two thirds of the revenue. Budget cuts have been carried out by almost 76% of the US customers of Infosys.