Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 102

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 5
Chunk 102
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31, 2025. All our capital commitments will be financed out of cash generated from operations. We expect our outstanding contractual commitments as of March 31, 2025, to be largely completed in a year.
As of March 31, 2025, we had purchase obligations amounting to $2,173 million, out of which approximately 57% is expected to be completed within the next year and the remaining thereafter. Purchase obligation means an agreement to purchase goods or services that is enforceable and legally binding on the Company that specifies all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.

Capital allocation policy and related payouts

As per our present capital allocation policy, “effective fiscal 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow* cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback / special dividends, subject to applicable laws and requisite approvals, if any.”

Under this policy, the Company expects to progressively increase its annual dividend per share (excluding special dividend if any).

The Board in its meeting held on April 17, 2025, recommended a final dividend of ₹22/- per equity share (approximately $0.26 per equity share) for the financial year ended March 31, 2025. The dividend was subject to the approval of shareholders in the AGM of the Company and was subsequently approved by the shareholders at the AGM of the Company held on June 25, 2025 and would result in a net cash outflow of approximately $1,066 million (excluding dividend on treasury shares).

* Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS.

Dividend and buyback include applicable taxes.
Quantitative and Qualitative Disclosures about Market Risk
General
Market risk is attributable to all market sensitive financial instruments including foreign currency receivables and payables. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive instruments.
Our exposure to market risk is a function of our revenue generating activities and any future borrowing activities in foreign currency. The objective of market risk management is to avoid excessive exposure of our earnings and equity to loss. Most of our exposure to market risk arises out of