TCS Q2 dividend at Rs 10 per share; here's record date, payment date & dividend history

Tata Consultancy Services Ltd (TCS) on Thursday said its board has approved a second interim dividend for FY25. The board, the largest domestic IT exporter said, has announced Rs 10 per share dividend. Tuesday, November 5, 2024, has been set as the day TCS will credit the dividend to eligible shareholders.

The record date for the dividend is set at Friday, October 18. This is the date when TCS will determine eligible 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.

Tata Sons, which owned 2,59,54,99,419 shares, or 71.74 per cent stake, will be distributed Rs 2,595.49 crore in interim dividends. Overall, the TCS dividend outgo will be about Rs 3,618 crore. TCS had announced a first interim dividend of Rs 10 apiece for FY25.

TCS dividend history

TCS, which has a policy of returning 80-100 per cent of free cash flow (FCF) to company shareholders, has been a consistent dividend payer. It declared dividend of Rs 73 per share for FY24.

The total shareholder payout by TCS stood at Rs 46,223 crore in FY24. Along with its Q4 results, TCS in April announced a final dividend of Rs 28 for FY24. This was in addition to an interim dividend of Rs 9 per cent share and a special dividend of Rs 18 per share it declared post its third quarter results. TCS declared interim dividends of Rs 9 each in the second and first quarters. Besides, it also came out with Rs 17,000 crore share buyback in FY24.

In FY23, TCS announced a final dividend of Rs 24 per share. In total, it paid Rs 115 per share dividend in the FY23, amounting to Rs 33,306 crore. The dividend yield stood at 3.59 per cent.

TCS paid Rs 7,686 crore in dividend in FY22, Rs 8,510 crore in dividend in FY21 and Rs 25,125 crore in dividend in FY20. On per share basis, it declared Rs 43 dividend in FY22, Rs 38 dividend in FY21 and Rs 72 in FY20.

TCS Q2 results

The IT major reported a 5 per cent year-on-year rise in net profit at Rs 11,909 crore for the September quarter. Net sales for the quarter grew 7.6 per cent YoY to Rs 64,259 crore, which was in line with Street estimates. On YoY basis, the revenue growth came in at 7.6 per cent. In constant current terms, TCS recorded a growth of 5.5 per cent.

Operating margin for the quarter came in at 24.1 per cent, down 20 basis points YoY. Net margin stood at 18.5 per cent.

K Krithivasan, Chief Executive Officer and Managing Director, said: “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our
biggest vertical, BFSI showed signs of recovery. We also saw a strong performance in our Growth Markets. We stay focused on sharpening our value proposition to our clients, employees and other stakeholders."