• TCS declares third interim dividend of ₹8 and special dividend of ₹67 per equity share
Shares of Tata Consultancy Services (TCS) rose to ₹3,320 in early deals on Monday on the BSE as the stock started trading on ex-dividend on Monday thanks to the interim and special dividend declared during Q3 results. was one day past its record date.
Announcing its Q3 FY23 earnings, the board of directors of TCS declared a third interim dividend of ₹8 and a special dividend of ₹67 on every Re 1 equity share of the company, taking the total dividend declared to ₹75 per share.
"The Third Interim Dividend and the Special Dividend will be paid on Friday, the 3rd February, 2023 to the Equity Shareholders of the Company, whose names appear in the Register of Members of the Company or as beneficial owners in the records of the Depositories. Tuesday, the 17th January , shares on 2023, which is the record date fixed for the purpose," India's top IT company said in the filing.
The IT company has a strong track record of distributing dividends to its shareholders, declaring 78 dividends since October 28, 2004. In the last 12 months, TCS has declared an equity dividend of ₹45.00 per share. At the current share price, this results in a dividend yield of 1.33%, according to Trendline data.
The IT giant reported a lower-than-expected profit at ₹10,846 crore for the third quarter ended December 2022 (Q3 FY23), up 11% year-on-year (YoY). Revenue growth has been better, but profit margin has been lower than expected. Management flagged challenges in Europe as customers tightened spending due to tough economic conditions, while it slashed its workforce for the first time since the pandemic.
Its total revenue grew 19% to ₹58,229 crore for the quarter under review, but it was a 0.5% decline in operating profit margin at 24.5% that limited overall profit growth. TCS' order book declined by 3.7% in the December quarter to $7.8 billion from $8.1 billion at the end of the September quarter. TCS CEO Rajesh Gopinathan said the company was constructive on the US, cautious on Europe and positive on the UK, acknowledging that the situation could be volatile.
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