TCS announces Rs 45 as dividend; Q2 result in a nutshell

India’s largest IT behemoth Tata Consultancy Services (TCS) on Thursday declared a second interim dividend of Rs 5 per share in Q2 of FY20. It also announced a special dividend of Rs 40 per equity share of Re 1 each of the company. Notably, both dividends will be paid on October 24, 2019 to the equity shareholders, TCS said in an exchange filing. The dividends will be paid to “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 Friday, October 18, 2019 which is the Record Date fixed for the purpose.”

TCS posted 1.7 % on-year rise in net profit to Rs 8,042 crore for the quarter ended September of FY20, falling short of street estimates. TCS had posted a profit of Rs 7,901 crore in the July-September quarter of FY19. CNBC TV18 and ET Now had expected TCS second quarter net profit at above Rs 8,300 crore. The company recorded a revenue surge of 5.7% to Rs 38,977 crore in the second quarter as against the corresponding quarter of the last fiscal. The revenue stood at Rs 36,854 crore in Q2 of FY19. Notably, TCS is the first from the information technology pack to report quarterly results in this quarter of FY20. The company recorded EBIT of Rs 9,361crore in the quarter under review.

“We ended the quarter with steady growth despite increased volatility in the financial services and retail verticals. We remain confident as the medium and longer term demand for our services continues to be very strong, as evidenced by our Q2 order book-the highest in the last six quarters,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director.

TATA Consultancy Services ( TCS )