TCS has fixed January 19 as the record date to determine the eligibility of shareholders for the proposed dividend. The third interim dividend and the special dividend will be paid on February 5 to the eligible shareholders. Shares of TCS will likely trade ex-dividend on the day or a day before the record date.
The operating margin (EBIT margin) is expected to improve by 70-90 basis points sequentially due to operating efficiency and absence of major salary increments as they were implemented in the previous quarter. The company reported an EBIT margin of 23.2% in the June quarter
Tata Consultancy Services (TCS) reported a YoY rise of 17% in consolidated net profit of Q1 to Rs 11,074 crore. However, consolidated revenue increased nearly 13%, marginally lower than the estimated Rs 59,500 crore. Motilal Oswal and Nuvama retained their Buy recommendation on the IT major, while Nomura maintained a Reduce rating.
The interim dividend shall be paid on August 7 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 record date.