TCS Shares On Investors' Watchlist On Dividend Declaration, 9% Growth In Net Profit

TCS shares will remain on investors' radar on Thursday after the company made a slew of announcements including a declarion of Q2 results a day ago. Today, the share price of TCS fell 1.17% at Rs 3567.90 per share at 9:35 am IST.

Here's a look at TCS's Q2 Results, buyback program, and interim dividend declaration of Rs 9 Per Share:

Tata Consultancy Services reported revenue growth of 7.9% year-on-year (YoY) at Rs 59,692 crore in its consolidated financial results for the quarter ending September 30, 2023. This growth was driven by the UK (+10.7% YoY), Energy, Resources and Utilities (+14.8%), and Manufacturing (+5.8%). The Consumer Business Group (CBG) grew 1%, BFSI grew -0.5%, Communications & Media grew -2.1% and Technology & Services grew -2.2%.

The company informed that BSNL has selected TCS to roll out a modern 4G and 5G mobile communication infrastructure across India covering 100K telecom sites. The project involves supply, planning, design, installation and commissioning, and optimization of this mobile network, satisfying a detailed set of requirements conforming to 3GPP standards.

Other Highlights from the company's Q2 results include:

• Margin Expansion Drives EPS Growth of 8.7% YoY
• Order Book of $11.2 billion, Book to Bill ratio of 1.6
• Constant Currency revenue growth: +2.8% YoY
• Operating Margin at 24.3%; an expansion of 0.3% YoY
• Net Income at 11,342 crore, +8.7% YoY | Net Margin at 19%
• Net Cash from Operations at Rs 11,823 crore ie 104.2% of Net Income
• Dividend per share: Rs 9.00
• IT services' attrition was at 14.9% for the last twelve months.

TCS Let Go Of 6,333 Employees In Q2

As per the financial results report, TCS' workforce stood at 608,985 as of September 2023, which is down by 6,333 employees from the headcount of 6,15,318 as of June 30, 2023. Also, the workforce is down by 7,186 employees from a headcount of 616,171 employees in the second quarter of FY23.

TCS announces Second interim dividend of Rs 9 per share

The IT Major has announced its second interim dividend worth Rs 9 per share of Rs 1 each of the company. The Technology bellwether had already announced dividends worth Rs 108 in the previous four instances.

The company has fixed October 19, 2023, as the record date for the interim dividend.

TCS said: "The second interim dividend shall be paid on Tuesday, November 7, 2023, 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 Thursday, October 19, 2023, which is the Record Date fixed for the purpose."

TCS Approves Share Buyback Of Up To Rs 17,000 Crore:

TCS has approved a proposal to buyback up to 4,09,63,855 Equity Shares of the Company for an aggregate amount not exceeding Rs 17,000 crore, representing (1.12)% of the total paid-up equity share capital, at Rs 4,150 per Equity Share (hereinafter referred to as the "Buyback Price").

The company said that the Buyback is subject to the approval of the Shareholders by means of a special resolution through a postal ballot.