IT giant Tata Consultancy Services’ (TCS) board will also consider to declare the third interim dividend
Tata Consultancy Services’ (TCS) shares rise, board may declare the third interim dividend today; Know details
TCS Q3 Earnings: Shares of IT major TCS is trading higher today ahead of the earnings announcement in the evening. The scrip surged as much as 3.15 per cent to hit an intraday high of Rs 3,313 on the BSE ahead of its December quarter earnings announcement due later in the day. On the National Stock Exchange, TCS shares rose as much as 3.2 per cent to Rs 3,314.
TCS will kickstart earnings season today and is expected to have seen modest growth in the quarter ended December 31, 2022. Brokerages expect the company to post a modest growth in revenue, while margins could remain flat.
TCS to Consider Interim Dividend for FY23
TCS will consider the third interim dividend for FY23 also on January 9. Last month, The company had fixed January 17 as the record date to determine eligible shareholders for the third interim dividend.
“We hereby inform you that a meeting of the Board of Directors of Tata Consultancy Services Limited is scheduled to be held on Monday, January 9, 2023, inter alia to.. consider declaration of third interim dividend to the equity shareholders,” the company had informed in an exchange filing last month.
The third interim dividend, if declared, shall be paid to the equity shareholders of the company whose names appear on the Register of Members of the company or in the records of the Depositories as beneficial owners of the shares as on Tuesday, January 17, 2023, which is the Record Date fixed for this purpose, it added.
In the past 12 months, TCS has declared an equity dividend amounting to Rs 45.00 per share. At the current share price, this results in a dividend yield of 1.36 per cent, as per data by Trendlyne.
A Soft Quarter for IT Sector?
Brokerage Axis Securities expects TCS to report revenue growth of 3.6 per cent QoQ. Its Operating Margins are likely to remain flat owing to moderation in supply-side constraints. Key attributes to watch out for are a) Deal TCV/pipeline, b) Pricing scenario, and c) Outlook on growth/margins/DSO days.
Performance in Q2
In September quarter, TCS’ revenue jumped 8.6 per cent annually to $6,877 million and registered growth of 15.4 per cent in constant currency terms. Its operating profit margin contracted marginally to 24 per cent.
The company added 9,840 employees taking its total headcount to 616,171 employees.
Its net profit in September quarter advanced 17 per cent annually to Rs 10,059 crore compared with Rs 8,588 crore during the same period last financial year.
At the end of September quarter, TCS said that demand for cloud modernization services continued across all hyperscaler cloud services to drive scalability, reliability, and business transformations in all industry verticals. Hybrid cloud strategy continues to be the preferred approach for most enterprises, as it offers the right balance across the IT and business spectrum.
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