Indian IT companies are flush with extra cash in banks !
Just the top 5 IT companies have more than twenty thousand crore rupees ($5 Billion) in extra cash. According to Business Standard, the net cash figure jumped 31 per cent to Rs 21,148.42 crore in 2006-07 from Rs 16,151.36 crore in the previous year.
The aggregate net profit of these IT firms increased by around 56 per cent to touch Rs 13,135 crore in the 2007 financial year. Accounting for analyst estimates of the net profit and likely dividend to be given to shareholders in the 2008 financial year, these five firms are expected to have Rs 33,743 crore as net cash – a 59.5 per cent jump over the previous year’s figure
So, what are they doing with the money? Almost all of them said the best thing to do with their cash mountains was to turn them over to shareholders. The five companies paid Rs 3,391.50 crore as dividend to shareholders in 2006-07, against Rs 3,341 crore in the previous year (which includes a special dividend by Infosys.
