TCS Declares Interim Dividend of Rs 8 Per Equity Share; Here's What Investors Should Know
“We would like to inform you that at the board meeting held today (on Friday), the directors have declared an interim dividend of Rs 8 per equity share of Rs 1 each of the company," TCS said in a BSE filing declaring its financial results for the June 2022 quarter. The company also said its earnings per share also increased to Rs 25.9 in the June 2022 quarter, from Rs 24.35 a year ago.
It added that the interim dividend shall be paid on Wednesday, August 3, 2022, to the 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 as on Saturday, July 16, 2022, which is the record date fixed for the purpose.
The company had returned Rs 31,424 crore worth of cash to shareholders through buybacks and dividends in the financial year 2021-22. And, in the previous quarter, January-March 2022, TCS had announced a final dividend of Rs 22 per share.
Companies declare interim dividend payouts for shareholders, based on their earnings, every quarter; final dividends at the year-end; and an occasional special dividend.
TCS on Friday declared its financial results for the first quarter of the current financial year 2022-23. Its consolidated net profit jumped 5.2 per cent year-on-year to Rs 9,478 crore during the quarter. The company’s revenue during April-June 2022 rose 16.2 per cent to Rs 52,758 crore, compared with Rs 45,411 crore in the year-ago period.
Its overseas growth was led by North America which grew 19.1 per cent. The UK market saw a growth of 12.6 per cent, while Continental Europe posted a 12.1 per cent rise. Among emerging markets, Latin America grew 21.6 per cent, India saw a jump of 20.8 per cent, Asia-Pacific was up 6.2 per cent, and Middle East & Africa rises 3.2 per cent.
TCS Chief Financial Officer Samir Seksaria said: “It has been a challenging quarter from a cost management perspective. Our Q1 operating margin of 23.1% reflects the impact of our annual salary increase, the elevated cost of managing the talent churn and gradually normalizing travel expenses. However, our longer-term cost structures and relative competitiveness remain unchanged, and position us well to continue on our profitable growth trajectory."
Santosh Meena, head (research) at Swastika Investmart, said, “TCS missed the Street expectations in Q1 earnings, as margins are under pressure and the attrition rate is still high. However, the counter headed in its Q1 earnings with tepid expectations. Therefore, there is no knee-jerk reaction expected while buying can be seen at lower levels."
Meena added that Technically, The counter is still making lower highs and lower lows formation where a 50-DMA of 3333 is an immediate hurdle; above this, we can expect a short-covering rally towards the 3470-3500 zone. It has to sustain above the 3500 mark for any major buying interest. On the downside, 3200 is an immediate support level; below this, it is vulnerable to a fall towards the 3000 mark however 3000 is a good level for fresh entry.
TCS’ shares on Friday fell Rs 22.10, or 0.67 per cent, to close at Rs 3,264.85 apiece on the BSE.
0 Comments