TCS reports strong Q2FY24 numbers, declares dividend and share buyback program

After the market closed today, Tata Consultancy Services (TCS) announced its financial results for the quarter ending September 30, 2023, along with the declaration of a second interim dividend and a share buyback plan.

TCS Results Q2-FY24

In Q2FY24, on a consolidated basis, TCS recorded a robust financial performance, with a significant 8.74% year-on-year increase in net profit, reaching Rs 11,380 crore compared to Rs 10,465 crore in the corresponding quarter of the previous year. Additionally, during the first quarter of FY24, the company’s total net revenue showed a strong growth of 7.86%, soaring from Rs 56,274 crore to Rs 60,698 crore compared to the same quarter in the preceding year.

Sequentially, the net profit for the quarter ending on September 30, 2023, showed a commendable 2.34% increase from Rs 11,120 crore. However, in Q2FY24, the company’s total net revenue registered a minor 0.13% decline compared to the equivalent quarter in the previous year, settling at Rs 60,778 crore.

TCS – Dividend

The company’s board has approved a second interim dividend of Rs 9 per equity share, each having a face value of Rs 1, representing a remarkable 900% dividend yield. This second interim dividend will be disbursed on Tuesday, November 7, 2023. In the current financial year (FY24), TCS had already distributed a dividend of Rs 9 in the first quarter.

TCS – Buyback 2023

Furthermore, the board has granted approval for a share buyback program, enabling the repurchase of up to 4,09,63,855 (Four crore nine lakh sixty-three thousand eight hundred and fifty-five) equity shares of the company. This buyback amounts to an aggregate not exceeding Rs 17,000 crore, representing approximately 1.12% of the total paid-up equity share capital, with each equity share priced at Rs 4,150.

As of today’s closing, TCS shares settled at Rs 3,610.20. The company’s 52-week high is Rs 3,680, and the 52-week low stands at Rs 3,053.30. TCS currently commands a market capitalisation of approximately Rs 13,20,990 crore, with shares having generated a one-year return of 16.52%. Considering today’s closing price, the buyback offer represents a premium of Rs 14.95%.

About TCS

Tata Consultancy Services, a flagship company of the Tata Group, is a renowned IT services, consulting, and business solutions organization. With a legacy of over 50 years, TCS has been a trusted partner for many of the world’s largest businesses in their transformation journeys. The company offers a comprehensive range of consulting-led, cognitive-powered, integrated services and solutions in the fields of business, technology, and engineering.

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