In Q2FY23, TCS posted a net profit of ₹10,431 crore up by 8.4% yoy. Net margin stood at 18.9%. Revenue witnessed a growth of 18% yoy to ₹55,309 crore. In constant currency, the revenue growth stood at 15.4% yoy. TCS also recorded a healthy order book of $8.1 billion in the quarter. The IT giant's LTM IT services attrition rate is at 21.5%.
"We would like to inform you that at the Board Meeting held today, the Directors have declared a second interim dividend of ₹8 per Equity Share of ₹1 each of the Company," TCS said while announcing its Q2 results.
In its regulatory filing, TCS said, "The second interim dividend shall be paid on Monday, November 7, 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 Tuesday, October 18, 2022, which is the Record Date fixed for the purpose."
On BSE, TCS shares rose by ₹56.25 or 1.84% to close at ₹3,121.20 apiece. The company's market cap is around ₹11,42,063.11 crore.
Currently, TCS has a dividend yield of around 1.4%. The company has a strong track record of distributing dividends to its shareholders.
The first interim dividend of ₹8 per equity share for the financial year FY23 was paid by August 3, 2022. The total equity dividend percentage stood at 800% for the June 2022 quarter.
In the previous fiscal FY23, TCS paid a whopping 4,300% dividend to its shareholders. The Tata Group-backed company paid a total dividend of ₹43 per equity share. The company's shareholders pay-out stood at ₹38,010 crore up by 12.2% yoy. The pay-out included dividend (including unpaid dividends), buyback, and taxes.
Dividends and important dates
Dividends are a form of incentive that is distributed by a listed company from their profits to shareholders. Generally, when a company pays a proportion of its profit as a dividend, any amount which is not distributed as dividends are put in the free reserves and surplus of that company.
There are five important dates for dividends:
1. Declaration date: On this day, the board of directors of the company approves the dividend rate per equity share.
2. Record date: This date is also proposed by the company's board to identify the names of eligible shareholders for dividend benefits. All the shareholders whose name appears in the company's list by the end of the record date will be eligible to receive dividends. Usually, a minimum gap of 5 clear working days is needed between the declaration date and the record date.
It needs to be noted that it takes about one to two days for shares to get credited to your Demat account after the actual purchase day on stock exchanges. Thereby, ensure to make your buying accordingly so that the shares are visible in your Demat account on the record date.
TCS has a 'T+2' settlement option on exchanges. This means it will take two days for your TCS shares to get credited to your Demat account.
The record date fixed by TCS is October 18, 2022.
Cum Dividend Date: This is the last date to buy shares to be eligible to receive a dividend. This date is one day prior to the ex-dividend date and two days before the record date.
Ex-dividend date: This day the price of the equity shares of a company gets adjusted for the dividend payout. It is one working day before the record date.
Payment date: This date is the actual day when a listed company completes its dividend payout to eligible shareholders. The payment of dividends is usually completed within 30 days of its approval. The eligible shareholders most likely receive the dividend amount before this date.
