TCS declares second-highest dividend for FY25

10 Jan 2025 , 03:29 PM

Tata Consultancy Services (TCS), the country’s largest IT company, has declared its second-highest dividend for FY25. With one more quarter to go, the total dividend declared for the current financial year is ₹96. Except for FY23, this is the highest dividend the corporation has ever paid out in a single fiscal year. The current year’s payout has already outperformed the FY24 dividend per share (DPS) of ₹73.

In FY23, the firm paid a total dividend of ₹115 per equity share, with a special dividend of ₹67 per share. The company’s dividend payout climbed to 107.6%, with an outflow of ₹42,079 crore. In reality, the corporation has maintained an average payout ratio of more over 100% during the last five years, through fiscal year 24.

According to the company’s management, TCS experienced negative constant currency growth across significant geographies. However, it was able to record a total contract value (TCV) of $10.2 billion for the December quarter.

The equity shareholders will receive the third interim dividend and a special dividend on February 3, 2025. The corporation has set January 17 as the payout’s record date. Before the earnings, the company’s shares closed at ₹4038.85 on the NSE, down 1.7%. The stock rose 8% last year and is down 1.4% so far in 2025.