Shares of IT major Tata Consultancy Services (TCS) will turn ex-dividend on Thursday, October 19. The IT major had announced a second interim dividend of Rs 9 per equity share for the financial year 2023-24. The record date for the said dividend is also on October 19, 2023.

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The dividends would be paid to those shareholders, whose names will appear on the register of members of the company. The second interim dividend will be paid to eligible shareholders on Tuesday, November 7, 2023.

Data available with Trendlyne suggests TCS has declared 81 dividends since October 28, 2004.

In the past 12 months, the IT major has declared an equity dividend amounting to Rs 108 per share. At the current share price of Rs 3507.05, this results in a dividend yield of 3.08%.

The figure was higher than Wipro's 0.24% dividend yield but lower than Tech Mahindra's 4.18% dividend yield. Meanwhile, HCL Technologies' dividend yield stood at 3.76% and Infosys' 2.36%.

Infosys last week announced a dividend of Rs 18 per equity share for FY24. The record date for the same has been fixed on October 25, 2023. Also, IT services major HCL Tech has declared its third interim dividend of Rs 12 per equity share along with its financial results for the September quarter.

Shares of TCS will likely trade ex-dividend a day or two days before the record date. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. An ex-dividend date also dictates which shareholders are eligible to receive the dividend payment.

TCS Q2 numbers

The IT major has reported a net profit that marginally surpassed analyst expectations. It posted a net profit of Rs 11,342 crore as against CNBC-TV18's poll of Rs 11,162 crore.

The company's revenue in US Dollar terms came in at $7.2 billion, compared to estimates from a CNBC-TV18 poll of $7.28 billion. On a sequential basis, TCS' US Dollar revenue declined by 0.2%, compared to estimates of 0.75% growth.

In rupee terms, the firm's revenue surged by 0.5% quarter-on-quarter to Rs 59,692 crore. This number was lower when compared to analyst estimates of Rs 60,160 crore.

EBIT, also calculated as operating profit, for the second quarter stood at Rs 14,483 crore. Sequentially, TCS' EBIT was up 5.3%, compared to the June quarter. EBIT margin expanded by 110 basis points to 24.3%, compared to estimates of 23.6%.

Additionally, TCS has also approved a share buyback via the tender offer route. The IT bellwether will repurchase shares at Rs 4,150 apiece in a buyback valued at Rs 17,000 crore.

On Tuesday, shares of TCS settled 0.43% lower at Rs 3,509.00 on the NSE. The scrip has gained 7.59% since the beginning of this year and has risen 11.58% in the past 12 months.

First Published:Oct 18, 2023 7:50 AM IST