The IT bellwether Tata Consultancy Services Ltd (TCS) would be announcing its third interim dividend for FY25 later today, along with its quarterly results that would be out post stock market hours. The leadership team of TCS would be addressing the media at 5:30 pm and a conference call is scheduled at 7 pm.
The software exporter announced dividends worth Rs 20 per share for FY25 so far, Rs 10 each in Q1 and Q2, and if the third interim dividend is declared, the said dividend would be paid to the eligible shareholders, whose names appear in the records of the depositories as beneficial owners as on the record date Friday, January 17.
Last financial year, along with Q4 results, TCS had in April 2024 declared a final dividend of Rs 28 for FY24. TCS declared an interim dividend of Rs 9 per share and a special dividend of Rs 18 per share following its third-quarter results. In the second and first quarters, it also announced interim dividends of Rs 9 each. Additionally, TCS executed a Rs 17,000 crore share buyback program in FY24.
In total, TCS distributed Rs 46,223 crore to shareholders in FY24.
For FY23, TCS declared a final dividend of Rs 24 per share. The cumulative dividend for the year amounted to Rs 115 per share, translating to Rs 33,306 crore in total payouts, with a dividend yield of 3.59 per cent.
In previous years, TCS paid Rs 7,686 crore in dividends in FY22, Rs 8,510 crore in FY21, and Rs 25,125 crore in FY20. The per-share dividends were Rs 43 in FY22, Rs 38 in FY21, and Rs 72 in FY20.
As far as Q3 results are concerned, stock analysts anticipate that TCS will experience a flat constant currency (CC) revenue growth, with a sequential decline in dollar revenue growth. This is attributed to a reduced contribution from BSNL revenue and seasonal weakness due to furloughs. However, the impact will likely be partially mitigated by a reversal of exceptional items from the previous quarters. Margins are expected to expand by 20-40 basis points, driven by operational efficiencies.
Nuvama sees TCS' profit after tax at Rs 12,390 crore and revenue at Rs 64,129 crore. "We expect TCS to deliver 0.1 per cent QoQ CC revenue growth and 0.8 per cent QoQ dollar revenue degrowth due to lower BSNL revenue and furloughs, likely to be partially offset by a reversal of exceptional items of last quarters. Margin would expand 20 bps QoQ driven by operating efficiencies. We expect deal-wins to be stable. Watch out for the outlook on the BSNL deal and margin levels thereof," it said.