Tata Consultancy Services (TCS), India’s leading IT services company, is set to kick off the second quarter earnings season by revealing its financial results on October 11. Alongside this announcement, the company’s Board of Directors will also deliberate on the prospect of granting an interim dividend to shareholders for the fiscal year 2023-24.
In an official filing, TCS stated, “A meeting of the Board of Directors of Tata Consultancy Services is scheduled on October 11 to approve and take on record the audited condensed standalone and consolidated financial results of the company and consider the declaration of a second interim dividend to the equity shareholders.”
The record date for this second interim dividend has been set as October 19. This dividend, if approved, will be disbursed to the equity shareholders of the company whose names are listed on the register of members or in the records of the depositories as beneficial owners of the shares as of the record date.
It’s worth noting that TCS shares are expected to trade ex-dividend on the day of, or one day before, the record date. When a company goes ex-dividend on a particular date, the stock does not include the value of the upcoming dividend payment. The ex-dividend date also determines which shareholders are eligible to receive the dividend.
Over the past year, TCS has declared an equity dividend amounting to Rs 116 per share, resulting in a dividend yield of 3.29%.
The ongoing fiscal year presents a cloud of uncertainty for Indian IT companies as clients are scaling back their spending in the midst of a global economic slowdown.
Recently, Accenture, a major competitor of Indian IT services firms, issued modest guidance for FY24 revenue growth, projecting a range of 2-5% in constant currency terms, with a challenging first half.
In the first quarter, TCS reported a 17% year-on-year (YoY) increase in consolidated net profit, reaching Rs 11,074 crore. Consolidated revenue also experienced a 13% YoY growth, totaling Rs 59,381 crore.
On the stock market, TCS shares closed 0.33% lower at Rs 3525 on NSE.
