1400% Dividend Paid In H1FY24: HCL Tech Fixes Record Date For 3rd Interim Dividend, Q2 Results On October 12

HCL Technologies is among the dividend king stocks and the tech giant is once again set to reward its shareholders soon. The company has announced its proposal for a third interim dividend for FY24 and fixed record date as well. The proposal will be considered in a meeting scheduled on October 12, 2023, alongside the announcement of Q2FY24 quarterly earnings. In the current fiscal so far, HCL Tech has already paid a whopping 1400% dividend.

In its regulatory filing, HCL Tech said, "We would like to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, October 12, 2023, to consider amongst others:

- Unaudited Financial Results of the Company for quarter and half-year ending September 30, 2023.

- Payment of 3rd Interim dividend for the financial year 2023-24."

It added that the record date for determining the entitlement of the shareholders for the payment of the aforesaid interim
dividend shall be October 20, 2023, subject to the approval of the interim dividend by the Board of Directors.

Last week, on Friday, HCL Tech shares ended at Rs 1304.90 apiece, up by 1.7% on BSE. The stock also touched a new 52-week high of Rs 1,310 apiece during the day.

On the current market price, the company's dividend yield is at 3.68%.

The IT player has already paid a first and second interim dividend of Rs 18 per share (900%) and Rs 10 per share (500%) for the financial year 2023-24 so far.

During the financial year FY23, the company paid a total dividend of 2400% aggregating to Rs 48 per share.

In general terms, dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year. The record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

As per Trendlyne data, HCL Tech has paid a massive 86 dividends since September 2000.

During the first quarter of FY24, the company posted a consolidated revenue of Rs 26,296 crore, registering a growth of 1.2% QoQ and 12.1% YoY. In constant currency, the revenue was down by 1.3% QoQ but climbed 6.3% YoY. EBIT stood at Rs 4,460 crore, declining by 7.8% QoQ but up y 11.7% YoY. Net income stood at Rs 3,534 crore, falling by 11.3% QoQ but higher by 7.6% YoY.

In Q1FY24, the company won 18 large deals with TCV (new deals) at $1,565 million. The company said its pipeline was at an all-time high, up by 17.7% QoQ and 26.2% YoY. However, in the quarter, the company laid off 2,506 employees, taking its total headcount to 223,438 employees. The LTM attrition rate dipped by 7.5% YoY to 16.3% in the quarter.

For the full-year FY24 guidance, HCL Tech expects revenue growth in the range of 6% to 8% YoY in constant currency. While constant-currency services revenue growth is seen in the range of 6.5% to 8.5% YoY. EBIT margin is forecasted between 18% to 19%.