TCS to trade ex-dividend on Monday: Record and payment dates here

Market


Shares of India’s largest IT services company Tata Consultancy Services (TCS) will trade ex-dividend with respect to its third interim dividend of 75 per share, which included a special dividend of 67 per share for FY23, on Monday, 16 January.

The record date for the dividends totalling 75 per share is 17 January, 2023, i.e. investors’ eligibility for the dividend will be decided based on their holdings in the stock as of the said date.

As the interim dividend will be paid on ex-date basis, the stock is going to trade ex-dividend on Monday.

The third interim dividend and the special dividend will be paid to eligible shareholders of TCS on 3 February, 2023.

“The third interim dividend and the special dividend will be paid on 3 February, 2023, 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 17 January, 2023, which is the record date fixed for the purpose,” the company had said in a regulatory filing.

The IT bellwether has a strong track record of distributing dividends to its shareholders, declaring 77 dividends since 28 October, 2004.

“Movement of inflation and the US Fed decision will drive the overall market and TCS over the next 12 months. The IT major has managed to outperform markets in the long run. Therefore, we advised long-term investors to buy the stock on every dip as TCS is a consistent dividend payer,” said Kranthi Bathini, Equity Strategist at WealthMills Securities.

A dividend is the distribution of profits by a company to its shareholders. When a company makes a profit or surplus, it may pay out a proportion of the profit to shareholders in the form of a dividend.

TCS Q3 earnings

TCS, the first among its peers to report quarterly earnings, missed profit estimates and flagged challenges in Europe as clients tightened spending due to rough economic conditions.

The Tata Group flagship reported a lower-than-expected profit for the third quarter ended December 2022 at 10,846 crore, up 11% year-on-year.

The company said its employee count reduced by 2,197 on a net basis to 613,974 as on 31 December, its first such since the onset of the pandemic in the first quarter of fiscal year 2021. In the quarter ended September, TCS added 9,840 employees.

The company has since then slowed the pace of hiring amid fears of an economic recession in major western markets.

The Mumbai-based company’s order book for the October-December period stood at $7.8 billion, down from $8.1 billion in the September quarter.

Market participants are keenly watching TCS for signals on the demand outlook for the sector, which is staring at the possibility of a recession in the US and Europe from where it draws a bulk of its revenue.

The order wins reflect demand scenario, said TCS chief executive officer and managing director Rajesh Gopinathan.

“We are constructive on the US, cautious on Europe and positive on the U.K, but acknowledge it could be volatile. Our posture is positive,” he added.

“TCS delivered better-than-expected revenue growth in Q3, while margins came a tad below our expectations,” as per a report by Emkay Global Financial Services.

On Friday, shares of TCS ended 1.19% higher to settle at 3,374.20 apiece on the BSE. On the NSE, it closed 1.17% higher to end at 3,373.25 per share. The company’s market valuation is around 12.35 lakh crore.


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