IT stock announces 700% interim dividend, fixes record date

While announcing its second quarter earnings for the current fiscal year or Q2 FY23, Sonata Software Ltd said that its board has also declared an interim dividend of ₹7 per share (700% on par value) for FY 2022-23 and has also fixed the record date for the purpose of the dividend. 

“We wish to inform you that at the meeting of Board of Directors of the company held on 18th October, 2022, declared an Interim Dividend of Rs. 7.00 per share (700 % on par value of Rs. 1/-) for the financial year 2022-23. The record date for the purpose of payment of the Interim Dividend will be on Tuesday, 1st  November, 2022,” the Indian IT company informed in an exchange filing on Wednesday.

The Interim Dividend will be paid to the registered shareholders on or after Monday, 14th November, 2022 through electronic mode or by dividend warrants, as applicable.

"Pursuant to the amendments introduced in the Income Tax Act, 1961 (Act), vide Finance Act, 2020, w.e.f. April 1, 2020, the Company will be required to withhold taxes at the prescribed rates on dividend paid to the shareholders. Hence, the Interim Dividend declared shall be paid after deducting tax at source (‘TDS’) in accordance with the provisions of the Income Tax Act, 1961," it added.

Sonata Software Limited is a global technology company and is a service provider in business intelligence and analytics, application development management, mobility, cloud, social media, enterprise services, infrastructure management services among others. The IT stock is down more than 22% in 2022 (YTD) so far.

For the quarter ended September 2022, the company's consolidated net profit came at ₹112.7 crore, witnessing a year-on-year (YoY) growth of 24%, on the back of its revenue rises 55% from the year-ago quarter to ₹1,496 crore.

Speaking on the results, Samir Dhir, CEO of Sonata Software said: “The results for the quarter reflect strong growth in our business across our operating markets. We have increased our nearshore delivery presence, most recently developing talent in Ireland, to reach best-in-class talent in every geography we service our clients.”