Tata Consultancy Services, India’s largest IT services company, on Friday declared a final dividend of Rs 28 per share for the financial year 2023-24. Along with Rs 45 per share dividend announced earlier, the total TCS dividend for FY24 stood at Rs 73 per share. The TCS board approved the dividend proposal while announcing the IT firm’s March quarter results. The proposal will now be up for shareholder approval at TCS’ upcoming 29th Annual General Meeting (AGM).
Before this, TCS announced an interim dividend of Rs 9 per cent share and a special dividend of Rs 18 per share post its third quarter results. TCS declared interim dividends of Rs 9 each in the second and first quarter. Besides, it also came out with Rs 17,000 crore share buyback in FY24.
TCS announced a final dividend of Rs 24 per share in FY23. In total, it paid Rs 115 per share dividend in the previous financial year, amounting to Rs 33,306 crore. The dividend yield stood at 3.59 per cent. TCS paid Rs 7,686 crore in dividend in FY22, Rs 8,510 crore in dividend in FY21 and Rs 25,125 crore in dividend in FY20.
TCS paid Rs 43 per share dividend in FY22, Rs 38 per share dividend in FY21 and Rs 72 per share dividend in FY20. TCS has a policy of returning 80-100 per cent of free cash flow (FCF) to company shareholders. In FY23, its total payouts stood at 110 per cent of FCF.
TCS Q4 Performance
TCS recorded a 9% increase in net profit, reaching Rs 12,434 crore for the fourth quarter of FY24, compared to Rs 11,392 crore in the corresponding period last year.
In an exchange filing on April 12, the IT major disclosed that revenue climbed by 3.5% to Rs 61,237 crore for the three months ending on March 31.
On a sequential basis, profit after tax jumped 12%, compared with Rs 11,058 crore clocked in the preceding December quarter. Revenues were up 1% quarter-on-quarter (QoQ).
The software major closed the fourth quarter with record deals worth $13.2 billion and the FY24 order book TCV (total contract value) stood at an all-time high of $42.7 billion.
“We are very pleased ending FY24 on a strong note with the highest-ever order book and a 26% operating margin, validating the robustness of our business model and execution excellence,” said K Krithivasan, CEO and MD, TCS.
