A rewarding announcement by TCS
Tata Consultancy Services Ltd (TCS), the renowned IT giant, recently declared its second interim dividend of ₹9 per equity share for fiscal year 2023, marking an impressive 900% increase over the face value of the shares. This announcement followed TCS’s first interim dividend in July, keeping shareholders eagerly awaiting this rewarding moment.
In this blog, we’ll delve into the key details of this exciting news, the significance of TCS’s financial performance, and the impact on investors.
Dividend dates and important information
Before diving into the story, let’s have a quick look at the important dates and figures:
- Dividend amount: ₹9 per share
- Dividend payment date: November 7, 2023
- Record date: October 19, 2023
The second interim dividend will be paid to equity shareholders whose names appear on the Register of Members of the Company or in the Depositories’ records as beneficial owners of the shares as of the Record Date, October 19, 2023.
Here is a table summarizing the dividend dates:
| Event | Date |
| Announcement of Dividend | October 11, 2023 |
| Record Date | October 19, 2023 |
| Dividend Payment Date | November 7, 2023 |
The Investor’s Perspective
TCS’s decision to announce a generous dividend came amidst investor concerns. These concerns are rooted in the global economic slowdown, making the performance of IT companies like TCS a focal point for investors. While TCS reported remarkable deal wins during the quarter, translating those wins into profitability was a process that required time.
The company decided to take strategic steps to boost investor confidence. Firstly, it announced a share buyback at ₹4150 per share. This move sent a strong signal to investors about the company’s confidence in its future prospects. Secondly, the declaration of the ₹9 interim dividend was designed to reward shareholders for their continued support.
The combination of buybacks and dividends instills confidence in TCS’s future outlook while showing gratitude to its shareholders for their loyalty.
TCS’s Financial Performance
Let’s look at TCS’s financial performance to understand the context of this announcement.
| Quarterly Figures (in Crores) | Sep-23 | Jun-23 | Change (%) |
| Net Profit | ₹11,342 | ₹11,074 | 2.40% |
| Revenue (USD Terms) | $7.2 billion | $7.28 billion | -0.20% |
| Revenue (INR Terms) | ₹59,692 crore | ₹60,160 crore | -0.50% |
| Operating Profit (EBIT) | ₹14,483 crore | – | – |
| EBIT Margin | 24.30% | – | – |
Deal wins for the September quarter reached a staggering $11.2 billion, a sign of TCS’s prowess in the IT industry. The company’s financial results have been closely watched. While they may not have exceeded expectations, TCS’s commitment to its investors through buybacks and dividends is a strategic move that speaks volumes about the company’s stability.
Market Reaction and Conclusion
Before the announcement, the last trading price of TCS shares was ₹3609. However, in anticipation of bonuses and dividends, the shares had scaled to a 52-week high of ₹3680 on October 10, 2023.
Investors have been cautious given the prevailing global economic concerns, and TCS’s performance and its reflections on profitability were under scrutiny. While the figures may not have blown expectations away, TCS’s commitment to rewarding shareholders through dividends and buybacks sends a clear message: confidence in the company’s future prospects and a heartfelt ‘thank you’ to loyal investors.
In the stock market, TCS shares settled 0.44% lower at ₹3,613 on the NSE on the day of the announcement, yet they have gained a notable 10.78% year-to-date. TCS’s declaration of the ₹9 interim dividend is not just a financial transaction; it’s a tale of confidence, loyalty, and a strategic move to keep investors smiling.
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Frequently asked questions
Why is TCS’s ₹9 second interim dividend for fiscal year 2023 significant?
TCS’s ₹ 9-second interim dividend is a remarkable 900% increase over the face value of shares, rewarding shareholders for their confidence.
How do I qualify for TCS’s second interim dividend, and when will it be paid?
To qualify, you must be a TCS equity shareholder as of the October 19, 2023, record date. The dividend is likely to be paid on November 7, 2023.
What strategic steps has TCS taken to boost investor confidence, and how have they impacted financial results?
TCS announced a share buyback at ₹4150 per share, showing confidence in its future. While financial results may not have exceeded expectations, the company’s commitment to rewarding shareholders reflects stability and strategic moves.
I’m Archana R. Chettiar, an experienced content creator with
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