IT stock to consider declaring interim dividend in board meet today, record date fixed
1 min read . Updated: 09 Jan 2023, 11:28 AM IST
Premium- The IT major has fixed Tuesday, January 17, 2023 as the Record Date fixed for the interim dividend
Along with considering and announcing its third quarter earnings for the current fiscal (Q3FY23), IT giant Tata Consultancy Services' (TCS) board will also consider to declare the third interim dividend in the meet that is scheduled to be held on Monday, January 9, 2023. TCS shares surged more than 3% to ₹3,313 apiece on the BSE in early trading session.
“We hereby inform you that a meeting of the Board of Directors of Tata Consultancy Services Limited is scheduled to be held on Monday, January 9, 2023, inter alia to.. consider declaration of third interim dividend to the equity shareholders," the company had informed in an exchange filing last month.
The third interim dividend, if declared, shall be paid 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, January 17, 2023 which is the Record Date fixed for this purpose, it added.
In the past 12 months, TCS has declared an equity dividend amounting to ₹45.00 per share. At the current share price, this results in a dividend yield of 1.36%, as per data by Trendlyne.
Expecting a soft quarter for the IT sector, analysts expect moderate growth, aided by ramp up on large deal wins in the previous quarters, but margins could remain flat due to moderation in supply side constraints.
Brokerage Axis Securities expects TCS to report revenue growth of 3.6% QoQ. Its Operating Margins are likely to remain flat owing to moderation in supply-side constraints. Key attributes to watch out for are a) Deal TCV/pipeline, b) Pricing scenario, and c) Outlook on growth/margins/DSO days.
Analysts at BNP Paribas expect TCS' dollar revenue growth of 1.4% q-q (+1.5% q-q in CC) due to the impact of usual seasonality. “We model a 33bp q-q EBIT margin expansion to 24.3% as supply-side challenges ease and utilisation and productivity levers kick in. Look out for: Medium-term industry demand trends and impact of macro headwinds on demand; commentary on US and Europe markets; deal wins; deal pipeline; margin guidance."
