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TCS declared a bumper Q3 dividend of Rs 57 per share, surpassing estimates
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Interim dividend is Rs 11, special dividend Rs 46, payable on Feb 3 to Jan 17 holders
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Analysts expected Rs 34.19 per share dividend; actual payout far exceeded projections
Tata Consultancy Services Ltd. (TCS) on Monday announced a bumper dividend of Rs 57 for the third quarter of the ongoing financial year, topping street expectations by a wider estimate.
India's largest IT exporter announced an interim dividend of Rs 11 per share and a special dividend of Rs 46 per share, according to its notification to the exchanges.
The record date for determining eligible shareholders for the payout is Jan. 17 and the amount will be paid to them on Feb. 3, as per the company's exchange filing.
Analysts tracked by Bloomberg expect the company to announce a dividend of Rs 34.19 per share for the quarter. Estimates from 26 analysts range from a low of Rs six per share to a high of Rs 75 per share.
So far in the current financial year, the company has paid dividends totalling Rs 22 per share. For the full year, analysts tracked by Bloomberg expect a payout of Rs 115.72 per share. This implies that the market expects close to Rs 94 per share in dividends over the remaining part of the financial year.
Historical data shows that TCS has maintained steady dividend payouts across financial years, with variations depending on earnings and board decisions. In FY25, the company announced dividends of Rs 126 per share, compared with analyst expectations of Rs 121.03 per share. In FY24, the company declared Rs 73 per share against an anticipated Rs 74.06 per share.
Q3 Payout Pattern
Quarterly data for the third quarter shows that actual payouts have often differed from analyst expectations with a wide margin. In Q3 FY25, analysts anticipated a dividend of Rs 28.71 per share, while the company announced Rs 76 per share. In Q3 FY24, the anticipated dividend was Rs 10.63 per share, compared with an announced Rs 27 per share.
Shares of Tata Consultancy Services rose 1.10% to Rs 3,243 per share compared to a 0.42% uptick of the NSE Nifty 50 Index. The stock had fallen 24.50% in the last 12 months.
Out of 51 analysts tracking the company, 35 have a 'buy' rating on the stock, 11 recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 11.1%.
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