This week is the record date for TCS’ interim dividend

The board of India’s top IT company, Tata Consultancy Services (TCS), recently announced an interim dividend of Rs 8 per equity share of Re 1 in the company together with its earnings for the first quarter ending June 2022. This week, on July 16, was chosen as the interim dividend record date for TCS.

The interim dividend will be paid on Wednesday, August 3, 2022, to equity shareholders of the company whose names are listed as beneficial owners of the shares as of Saturday, July 16, 2022, which is the record date set for this purpose, on the company’s register of members or in the depositories’ records. A listed firm must distribute any excess profits as a dividend to its shareholders.

The total dividend paid by TCS in FY22 was Rs 43 per equity share. The shareholder pay-out for the company was 38,010 crore for the entire year, an increase of 12.2 percent year over year, according to the annual report dated June 2. Dividends, including the unpaid dividend, buybacks, and taxes were included in the payout.

TCS missed analysts’ expectations last week when it announced a 5.2% increase in Q1FY23 profit from a year earlier. This was due to growing staff costs that reduced profits even while demand was still strong. In the three months that ended in June, the Mumbai-based company’s net profit increased to 9,478 crore. Due to broad-based growth, revenue for the quarter increased by 16 percent from a year ago to 52,758 crore.

Constant Currency (cc) revenue growth was up 15.5% year over year, while Q1 dollar revenue was up 10% from the same period last year at Rs 6,780 million. Operating margin for the quarter was 23.1 percent, a decrease from 25.5 percent a year earlier. According to the firm, this was mostly because of the impact of yearly compensation increases, increased costs associated with managing talent churn, and gradually normalising travel expenses.

On the BSE on Wednesday, TCS shares were trading more than 1% lower at Rs 3,041 per share. Compared to a 9 percent decline in the benchmark Sensex, the IT stock has lost roughly 20% of its value so far in 2022 (YTD).