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Tata Consultancy Services (TCS), India's largest IT services exporter, has announced its second interim dividend for the fiscal year 2024-25 (FY25), leading to a significant dividend income for Tata Sons Pvt Ltd. Tata Sons, holding a majority 71.74 percent stake in TCS, is set to receive approximately Rs 2,600 crore from this dividend payout. This follows an earlier interim dividend of Rs 10 per share announced on July 19, 2024, for the same financial year. The latest dividend declaration of Rs 10 per share, announced in Q2FY25 (July-September), solidifies Tata Sons' position as a major beneficiary of TCS's financial performance.
The dividend income for Tata Sons is calculated based on its shareholding in TCS. As of the end of the June 2024 quarter, Tata Sons held 259 crore shares of TCS, representing 71.74 percent of the company's total shares. This substantial shareholding ensures a considerable portion of TCS's dividend payout flows directly to Tata Sons. Notably, Tata Investment Corporation also holds a minor 0.03 percent stake in TCS, contributing a smaller amount to the overall dividend income.
The record date for the second interim dividend has been set as Friday, October 18, 2024, meaning shareholders registered on this date will be eligible to receive the dividend. This information provides clarity for investors regarding their entitlement to the dividend payment. The dividend yield, calculated as the annual dividend payment divided by the share price, currently stands at 1.32 percent for TCS. This signifies the return investors can expect on their investment in the company. TCS's share price on the National Stock Exchange (NSE) settled at Rs 4,227.90 on October 10, showing a marginal decline of 0.59 percent.
The news of the dividend announcement comes amidst a positive performance for TCS in 2024. The company's shares have gained 10.96 percent year-to-date, outperforming the benchmark Sensex which has risen 12.92 percent in the same period. The dividend declaration and the positive share performance highlight TCS's financial strength and its ability to reward shareholders. However, it is crucial for investors to consult with certified financial advisors before making any investment decisions based solely on the information presented in this article.
Source: Tata Sons to earn nearly Rs 2,600-crore income as TCS announces 2nd interim dividend for FY25