TCS Stock Trades Ex-Dividend Today, Shares Dip 1%; Know Payment Date?

TCS Share Price: Shares of Tata Consultancy Services (TCS) are trading lower as they turn ex-date for dividend today (June 15).

TCS Ex-Dividend Date

The stock is trading adjusting for this dividend announcement. A record date also indicates which shareholders are eligible to receive the dividend payment.

TCS share price was quoting around Rs 3,230 apiece levels, near 0.50 per cent lower from its Wednesday close on NSE.

TCS informed Indian stock market bourses about the dividend payment citing, “We would like to inform you that at the Board Meeting held today, the Directors have recommended a Final Dividend of Rs 24 per Equity Share of Re 1 each of the Company which shall be paid/dispatched on the fourth day from the conclusion of the 28th Annual General Meeting, subject to approval of the shareholders of the Company.”

On TCS dividend record date, the IT major said, “Pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Thursday, June 15, 2023 as the Record Date for determining entitlement of Members to final dividend for the financial year ended March 31, 2023.”

The dividend payout of financial year 2023 even surpassed the combined dividend distributed in financial year 2022 and 2021, during which the company had paid Rs 15,734 crore and Rs 14,056 crore respectively.

On an absolute basis, TCS distributed dividends worth Rs 115 in financial year 2023, which also includes a special dividend of Rs 67 per share.

What Analysts Say?

On Wednesday, JP Morgan said that it expects most IT services firms to miss current expectations and place Infosys, TCS and Mphasis on negative catalyst watch.

The foreign brokerage firm has reiterated its negative view across the IT Services universe, and expects every technology services firm to disappoint street expectations in 1Q and current second half of FY24 growth expectations.

Meanwhile, Motilal Oswal Financial Services noted that despite demonstrating strong resilience, TCS should anticipate the possibility of a moderate full-year revenue growth in FY24 if similar instances of delayed decision-making and cash conservation from clients reoccur.

Yet the domestic brokerage firm believes, considering TCS’s size, order book, and exposure to long duration orders and portfolio, the IT major is well positioned to withstand the weakening macro environment and ride on the anticipated industry growth.