Shares of Tata Consultancy Services (TCS) rose nearly 4% on January 11 after the IT services giant reported a 1.96% year-on-year increase in consolidated net profit to Rs 11,097 crore for the December quarter. This was despite a one-time charge of Rs 958 crore related to the settlement of a legal claim.
Along with the latest earnings, TCS declared a special dividend of Rs 18 per share and an interim dividend of Rs 9 per share for fiscal 2024, in addition to the Rs 9 per share dividends announced in the first two quarters. This takes the total dividend for FY24 to Rs 45 per share so far.
For the current fiscal year, TCS is set to pay out approximately Rs 16,456 crore in dividends, following massive payouts of Rs 33,306 crore in FY23 and Rs 7,686 crore in FY22.
TCS has also consistently announced share buybacks, with the most recent being a Rs 17,000 crore buyback in FY23. Since 2017, the IT services leader has declared five buybacks totaling over Rs 80,000 crore.
As of 9:40 am on January 11, TCS shares were trading 3.59% higher at ₹3,869.80, continuing their upward momentum after the earnings announcement and dividend news.