TCS Q2 results: Dividend set at Rs 10 per share. Check key dates

Tata Consultancy Services (TCS) announced an interim dividend of Rs 10 per share for the second quarter of FY25. The company’s board approved the dividend on Thursday, and eligible shareholders will receive the payout on Tuesday, November 5, 2024.
The record date for determining shareholders eligible for the dividend has been set for Friday, October 18, 2024. Shareholders whose names appear in the company’s register or in the depositories as beneficial owners of the shares by this date will qualify for the dividend.
This is the second interim dividend that TCS has declared for the financial year 2025. The company had earlier announced a first interim dividend of Rs 10 per share during the first quarter of this fiscal year.
TCS has consistently maintained a policy of returning 80% to 100% of its free cash flow to shareholders. Over the years, it has built a reputation as a reliable dividend payer. For FY24, TCS declared a total dividend of Rs 73 per share.
In FY24, TCS’s total shareholder payout, including dividends and share buybacks, stood at Rs 46,223 crore. In April 2024, along with its Q4 results, the company announced a final dividend of Rs 28 per share for FY24. This was in addition to an interim dividend of Rs 9 per share and a special dividend of Rs 18 per share, declared after the company’s third-quarter results. TCS also declared interim dividends of Rs 9 each during the first and second quarters of FY24. Moreover, the company completed a Rs 17,000 crore share buyback during FY24, further benefiting its shareholders.
In FY23, TCS paid a total dividend of Rs 115 per share, amounting to Rs 33,306 crore, with a dividend yield of 3.59%. In FY22, the company paid Rs 43 per share as a dividend, amounting to Rs 7,686 crore. This was lower compared to Rs 38 per share in FY21, when the company paid Rs 8,510 crore in dividends. For FY20, TCS announced a total dividend of Rs 72 per share, amounting to Rs 25,125 crore.
Alongside the dividend announcement, TCS released its financial results for the second quarter of FY25. The company reported a 5% year-on-year (YoY) rise in net profit, amounting to Rs 11,909 crore, compared to Rs 11,342 crore in the corresponding quarter of the previous year.
TCS’s revenue from operations increased by 7.6% YoY to Rs 64,259 crore, meeting market expectations. The company recorded a 5.5% growth in constant currency terms during the quarter. The IT major’s operating margin stood at 24.1%, a slight decline of 20 basis points compared to the same quarter last year. Net margin for the quarter came in at 18.5%.
TCS CEO and Managing Director, K Krithivasan, commented on the company’s performance during the quarter, stating, “We saw the cautious trends of the last few quarters continue to play out in this quarter as well. Amidst an uncertain geopolitical situation, our biggest vertical, BFSI, showed signs of recovery. We also saw a strong performance in our Growth Markets.”