TCS Announces Final Dividend of Rs 28 per Share for FY24, Total Dividend Reaches Rs 73 per Share
In a recent development, Tata Consultancy Services (TCS), the leading IT services company in India, has declared its plan to issue a final dividend of Rs 28 per share for the fiscal year 2023-24. This decision, made during the announcement of the company’s March quarter results, marks an addition to the Rs 45 per share dividend declared earlier, resulting in a cumulative dividend payout of Rs 73 per share for FY24.
The announcement came following a Board Meeting held by TCS, where directors recommended the final dividend of Rs 28 per Equity Share of Rs 1 each of the Company. However, the payment or dispatch of this dividend is subject to approval by the company’s shareholders and is scheduled for the fourth day from the conclusion of the 29th Annual General Meeting.
Previously, TCS had disclosed an interim dividend of Rs 9 per share and a special dividend of Rs 18 per share post its third-quarter results. Moreover, in FY24, the company initiated a share buyback program worth Rs 17,000 crore.
For the preceding financial year, FY23, TCS had announced a final dividend of Rs 24 per share, resulting in a total dividend payout of Rs 115 per share, amounting to Rs 33,306 crore. Notably, the dividend yield stood at 3.59%. In the years prior, TCS had disbursed Rs 7,686 crore in FY22, Rs 8,510 crore in FY21, and Rs 25,125 crore in FY20.
Underlining its commitment to shareholders, TCS follows a policy of returning 80-100% of free cash flow (FCF). In FY23, the company’s total payouts reached 110% of FCF.
In the fourth quarter of FY24, TCS reported a 9% increase in net profit, reaching Rs 12,434 crore compared to Rs 11,392 crore in the corresponding period last year. The company’s exchange filing on April 12 revealed a 3.5% rise in revenue to Rs 61,237 crore for the three months ending on March 31.
With this strategic move, TCS continues to demonstrate robust financial performance and a commitment to enhancing shareholder value. The proposal awaits shareholder approval at the forthcoming 29th Annual General Meeting (AGM).
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