TCS shares trade ex-dividend today. What investors should know

14 Jul , 2022 By : Kanchan Joshi

Shares of Tata Consultancy Services (TCS) started trading ex-dividend on Thursday, ahead of its record date for the interim dividend. The IT stock fell 0.3% to Rs3,028 apiece on the BSE in early deals and is down about 8% in the last five trading sessions after reporting a disappointing results for the April-June quarter.

While announcing its earnings for the first quarter ended June 2022, India's top IT company Tata Consultancy Services' (TCS) board also declared an interim dividend of Rs8 per equity share of Re 1 each of the company. The record date of TCS' interim dividend has been set on July 16, 2022.

"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," TCS had informed in an exchange filing.

A dividend means the distribution of surplus from the profits by a listed company to its shareholders. India's top IT company TCS has been returning cash to shareholders through interim dividends every quarter, final dividends at the year-end and an occasional special dividend.

In FY22, TCS' total dividend stood at Rs43 per equity share. In the annual report dated June 2, it was revealed that for the full year, the company's shareholder pay-out stood at Rs38,010 crore up by 12.2% year-on-year (YoY). The pay-out included dividend including the unpaid dividend, buyback and taxes.

Last week, the Tata Group company reported over 5% rise in Q1FY23 net profit from a year earlier, missing analysts’ estimate, as rising employee costs squeezed earnings even as demand remained robust. The Mumbai-based company’s net profit rose to Rs9,478 crore in the quarter ended June.

It reported a 16.2 per cent growth in revenue at Rs52,758 crore for the quarter, with all the big geographies and business segments reporting strong numbers, but it was operating profit margins, which slid down to 23.1% that hurt the profit growth.