TCS Dividend: Shares of Tata Consultancy Services (TCS) hit a 52-week low on Friday, a day ahead of its dividend record date. At 12:25 pm, IT stock hit a new low of Rs 1,959.95 on BSE. The stock has lost more than 10 per cent in the last six sessions following disappointing April-June quarter results.
While announcing its earnings for the first quarter ended June 2022, the board of India’s top IT company Tata Consultancy Services (TCS) also declared an interim dividend of Rs 8 per equity share of Re 1 per equity share of the company. The record date for the interim dividend of TCS has been set as July 16, 2022.
“Interim dividend shall be paid on Wednesday, the 3rd August, 2022 to the equity shareholders of the company, whose names appear in the register of members of the company or in the records of the depositories on Saturday as beneficial owners of the shares. , July 16, 2022, which is the record date fixed for the purpose,” TCS had informed in an exchange filing.
Dividend means the distribution of surplus out of profits by a listed company to its shareholders. India’s top IT company TCS has been returning cash to shareholders through quarterly interim dividend, year-end final dividend and occasional special dividend.
In FY22, the total dividend of TCS was Rs 43 per equity share. In its June 2 annual report, it was revealed that for the full year, the company’s shareholder pay-out (YoY) grew 12.2 per cent year-on-year at Rs 38,010 crore. Pay-out included unpaid dividends, buybacks and dividends including taxes.
Last week, the Tata group company reported a more than 5 per cent rise in Q1FY23 net profit from a year ago, missing analysts’ estimates, as rising employee costs squeezed earnings, even as demand remained strong. The Mumbai-based company’s net profit rose to Rs 9,478 crore for the quarter ended June.
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Shweta Madnani, Analyst, Choice Equities, said, “We have achieved outperform rating with a target price of Rs 3,993. The quarter’s results were disappointing, with revenue growth lower than expected, but the medium-term order-taking and outlook remains strong. Margins were lower in the first quarter as the full impact of the annual wage increase was reflected. Over the next few quarters, we expect margins to increase.
Puneet Patni, Equity Research Analyst, Swastik Investmart Ltd, said: “We are positive about TCS Ltd from a long-term perspective despite disappointing Q1 FY13 results. The company posted decent growth in the quarter, but was disappointed on the margin front due to rising sub-contracting costs, wage inflation and supply-side issues. However, management comments have been cautiously optimistic given the current scorching inflation in the US and European regions, which could put some pressure on IT spending in the near term. Nevertheless, long-term demand growth drivers remain intact and the current correction provides a good entry point.
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