TCS Announces Dividend Of Rs 76 Per Share

Tata Consultancy Services Ltd. announced on Thursday a third interim dividend of Rs 10 and a special dividend of Rs 66 per equity share of Rs 1 each of the company.

The third interim and the special dividend will be paid on Fe. 3, 2025 to the shareholders of the company, according to the exchange filing on Thursday. The record date for the dividend is set for Jan.17.

The company previously announced a second dividend of Rs 10 per equity. The record date for the interim dividend was set for Oct. 18. It also gave its first interim dividend of Rs 10 per share. The record date for the same was set for July 20.

TCS's net profit rose 4.1% sequentially to Rs 12,444 crore in the three months ended Dec. 31, 2024. This is in-line with the consensus estimate of Rs 12,537 crore shared by analysts tracked by Bloomberg.

The IT major's revenue from operations dipped 0.4% over the previous three months to Rs 63,973 crore in the third quarter, according to an exchange filing on Thursday. That compares with the Rs 64,749-crore consensus estimate of analysts tracked by Bloomberg.

Management Comments

"We are pleased with the excellent TCV performance in Q3 which was well-rounded across industries, geographies and service lines lending good visibility to long-term growth," according to K Krithivasan, chief executive officer and managing director at TCS.

BFSI and CBG returning to growth, continued "stellar run" of Regional Markets and early signs of revival in discretionary spend in some verticals give us confidence for the future, he said. "Our continuing investments in upskilling, AI/Gen AI Innovations and partnerships sets us up to capture the promising opportunities ahead."

TCS promoted over 25,000 associates this quarter, which brought the total promotions this financial year to more than 110,000, said Milind Lakkad, chief HR officer at TCS.

"We continue to invest in employee upskilling and overall well-being. Our campus hiring for the year is going according to plan and preparations are afoot to onboard a higher number of campus hires next year," he added.

Shares of TCS closed 1.69% lower at Rs 4,038.85 apiece on the National Stock Exchange, compared to a 0.69% fall in the benchmark Nifty. The share price has risen 9.46% in the last 12 months.

Out of 49 analysts tracking the company, 30 maintain a 'buy' rating on the stock, 13 recommend 'hold' and six suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 12.1%.