Rs 13,000 cr for investor pay back lower than TCS' Rs 16,000 cr but good
Just how good is the company's new dividend payout policy? Analysts say it is a good one.
"We view the revised dividend payout policy positively. Effective from Financial Year 2018, the Company expects to payout up to 70% of the free cash flow of the corresponding Financial Year either by way of dividend and/or share buyback. Apart from this, the company will pay an amount of roughly Rs.130bn ($2 billion) during Financial Year 2018 either by way of dividend and/or share buyback,“ Dipen Shah, senior vice president - PCG Research, Kotak Securities, said in a statement.
Earlier, Karan Taurani of Daulat Capital had told CNBC-TV18 that Rs 13,000 crore earmarked by the company for both dividend payout and share buyback was lower than Rs 16,000 crore set aside by its larger rival TCS.