HCL Tech Declares Rs 12/Share Interim Dividend, Fixes Record Date; 84th Consecutive Quarters Dividend Payout

Dividend King Stock: HCL Technologies has declared fourth interim dividend for FY24 to the tune of Rs 12 per share. The company has also fixed records and payment dates for the same. This will be HCL's 84th consecutive quarterly dividend payout. HCL holds a strong record of paying hefty dividends to its shareholders in over two decades.

In its regulatory filing, HCL Tech said, "The Board of Directors has declared an Interim Dividend of Rs 12/- per equity share of Rs 2/- each of the Company for the Financial Year 2023-24."

HCL fixed January 20, 2024, as the record date for the aforesaid interim dividend. On this day, HCL will also turn ex-dividend. The shareholders who will hold HCL Tech shares in their demat account by the end of January 20th will be eligible for the benefit.

The payment of the fourth interim dividend is January 31, 2024.

For the financial year 2023-24, the last time HCL Tech turned ex-dividend was in October 2023 for a third interim dividend of 600% amounting to Rs 12 per share, while it turned ex-dividend in July for a second interim dividend up to 500% valuing to Rs 10 per share. The first interim dividend payout was of 900% amounting to Rs 18 per share, and HCL turned ex-dividend for this in April.

So far, in the current fiscal, HCL Tech paid dividends up to 2000% amounting to Rs 40 per share to its shareholders.

In FY23 alone, the company paid up to 2400% dividends aggregating to Rs 48 per share.

Currently, HCL Tech has a dividend yield of 3.12%. As per Trendlyne data, HCL Tech has delivered up to 87 dividends since September 2000.

On BSE, HCL's share price ended at Rs 1,543 apiece, up by 3.85% with a market cap of Rs 4,18,718.52 crore on Friday. Also, during the trading hours, HCL Tech touched a new 52-week high of Rs 1,554.75 apiece.

In Q3FY24, HCL garnered a consolidated net profit of Rs 4,350 crore, registering a growth of 13.51% from a net profit of Rs 3,832 crore in Q2FY24 and also up by 6.20% from Rs 4,096 crore in Q3FY23.

Meanwhile, in the quarter, HCL's rupee revenue was at Rs 28,446 crore on a consolidated basis, rising by 6.65% QoQ and 6.54% YoY. In dollar terms, revenue stood at $3,415 million, up by 5.9% QoQ and 5.3% YoY. Meanwhile, constant currency revenue growth was at 6% QoQ and 4.3% YoY.

As per Trendlyne, the consensus recommendation from 39 analysts for HCL Technologies is HOLD. Of the total analysts in the consensus, 9 of them have recommended 'STRONG BUY', 7 of them said 'BUY', and a majority of 16 analysts suggested 'HOLD' on HCL Tech shares. The rest were sell and strong sell recommendations. HCL's EPS is expected to grow by 5.5% in FY24.

Further, Trendlyne highlighted positives for HCL Tech shares. These are:

- Stock Price rose 43.78% and outperformed its sector by 4.34% in the past year.

- Debt to Equity Ratio of 0.03 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Mutual Fund Holding increased by 0.28% in the last quarter to 8.26.

- Interest Coverage Ratio is 67.95, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Return on Equity(ROE) for the last financial year was 22%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit.

- Price to Earning Ratio is 27.07, lower than its sector PE ratio of 72.91.

- Promoter Share Holding stayed the same in the most recent quarter at 60.81%.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.