TCS dividend 2023: How Indian share market may react to Tata group IT behemoth's Q4 results, dividend payout

TCS share price, dividend: Tata group IT major Tata Consultancy Services (TCS) kicked off the Q4 results season on Wednesday, April 12, with profit and revenue slightly below analysts' estimates, and a proposed final dividend of Rs 24 per share — a 2,400 per cent payout. Here's a lowdown on the TCS Q4 earnings how the Street might react to the Mumbai-based IT giant's latest quarterly numbers.

TCS share price, dividend: The Tata group IT giant's stock closed with a gain of Rs 27.9 or 0.9 per cent at Rs 3,242.1 apiece on BSE ahead of the earnings announcement. | Image: TCS

TCS share price, dividend: Tata group IT major Tata Consultancy Services (TCS) kicked off the earnings season by reporting its Q4 results on Wednesday. The release of TCS Q4 results — the first earnings report by a Nifty 50 blue-chip company — set the stage for the India Inc to report their financial results. Infosys — India's second largest IT company after TCS — will report its Q4 results on Thursday, April 14 and HDFC Bank on Saturday, April 15.

TCS Q4 results summary

Tata Consultancy Services (TCS) — the Tata group IT major which is the country's largest software exporter and its second most valuable company — reported a five per cent sequential increase in net profit to Rs 11,392 crore for the quarter ended March 2023.

Its revenue growth came in at 1.6 per cent to Rs 59,162 crore for the three-month period, according to a regulatory filing.

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Both top-line and bottom-line fell short of analysts' estimates by a thin margin. TCS proposed a dividend of Rs 24 per share — a 2,400 per cent dividend payout, subject to shareholder's approval. Read more on key takeaways from TCS Q4 results

EDITOR'S TAKE: Market wizard Anil Singhvi shares his views on what to do with TCS stock

Zee Business Managing Editor Anil Singhvi pointed out that the TCS Q4 results were a mixed bag, with profit, revenue and margin slightly below estimates and new orders slightly better than expectations "though there was no silver lining in new orders".

The management commentary was neutral, "not too good, not too bad", said Singhvi.

What to do with TCS shares after Q4 results?

Anil Singhvi suggests taking a call basis moves to the tune of 1.5-2 per cent on either side. His take: "Book profit if it rises 1.5-2 per cent, and buy if it falls by the same magnitude."

Here's all you need to know about the TCS dividend:

TCS dividend: When is the record date?

TCS is yet to fix a record date for the proposed final dividend for the financial year gone by.

TCS dividend: When will it be paid?

TCS said the dividend will be paid on the fourth day from the conclusion of its 28th Annual General Meeting (AGM).

TCS dividend: After the latest dividend, what's the TCS dividend yield for 2022-23?

As of March 31, TCS paid dividends to the tune of Rs 113 in the financial year 2022-23, taking its dividend yield to 3.5 per cent.

How the Indian share market may react to TCS Q4 results, TCS dividend

Here's a look at the reported TCS Q4 results as compared with Zee Business estimates:

Net profit at Rs 11,392 crore vs estimate of Rs 11,600 crore
Revenue at Rs 59,162 crore vs estimate of Rs 59,200 crore
Dollar revenue at $7,195 million vs estimate of $7,202 million
EBIT at Rs 14,488 crore vs estimate of Rs 14,700 crore
Margin at 24.5 per cent vs estimate of 24.8 per cent

Many analysts say one can expect TCS shares to be under pressure on Thursday, given the IT major's muted performance in the January-March 2023 period though with a few positives.

"The company has not managed to sustain its margins, though, for FY23, we see a steep decline of around 200 bps. Growth has been subdued for the quarter with the BFSI segment seeing single-digit growth and ending the year lower compared to the guidance," said Urmi Shah, Research Analyst at SAMCO Securities.

"However, the order book of $10 billion indicates optimism about growth in the IT sector. With the substantial decline in attrition rate, operational costs optimised and the order book remaining strong, it remains to see how FY24 pans out," Shah said.

Catch TCS Q4 results highlights and minute-by-minute updates on the stock market here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.

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