The board of IT giant Tata Consultancy Services (TCS) will also consider paying the third interim dividend
Shares of Tata Consultancy Services (TCS) rise, board may pay third interim dividend today; Know details
TCS Q3 Earnings: Shares of IT major TCS are trading higher today ahead of the evening’s earnings announcement. The scrip rose as much as 3.15 percent to reach an intraday high of Rs 3,313 on the BSE ahead of the December quarterly earnings announcement expected later today. On the National Stock Exchange, TCS shares rose as much as 3.2 percent to Rs 3,314.
TCS kicks off earnings season today and is expected to have experienced modest growth in the quarter ended December 31, 2022. Brokers expect the company to show modest revenue growth while margins could remain flat.
TCS considers interim dividend for FY23
TCS will also consider the third interim dividend for FY23 on January 9. Last month, the company had set January 17 as the record date to determine which shareholders are eligible for the third interim dividend.
“We hereby inform you that a meeting of the Board of Directors of Tata Consultancy Services Limited is scheduled for Monday, January 9, 2023, including to consider declaring third interim dividend to shareholders,” the company said. . had communicated in an exchange request last month.
The third interim dividend, if declared, will be paid to the shareholders of the company whose names are entered on Tuesday 17 January 2023 in the register of members of the company or in the records of the custodians as beneficial owners of the shares. , which is the registration date set for this purpose, it added.
In the past 12 months, TCS has declared a stock dividend of Rs 45.00 per share. At the current share price, this results in a dividend yield of 1.36 percent, according to data from Trendlyne.
A soft quarter for the IT sector?
Brokerage Axis Securities expects TCS to report revenue growth of 3.6 percent quarter on quarter. Operating margins are likely to remain flat due to the moderation of supply side constraints. Key features to look out for are a) Deal TCV/Pipeline, b) Price Scenario and c) Growth/Margins/DSO Days Outlook.
Performance in Q2
In the September quarter, TCS revenue increased 8.6 percent year over year to $6,877 million and recorded 15.4 percent growth in constant currency. The operating profit margin shrank marginally to 24 percent.
The company added 9,840 employees, bringing the total workforce to 616,171 employees.
Net profit in the September quarter increased by 17 percent pa to Rs 10,059 crore compared to Rs 8,588 crore in the same period last financial year.
At the end of the September quarter, TCS said demand for cloud modernization services continued across all hyperscaler cloud services to drive scalability, reliability and business transformation across all industry verticals. Hybrid cloud strategy remains the preferred approach for most enterprises as it strikes the right balance between the IT and business spectrum.
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