TCS declares more dividend, announces Rs 6 per share for Q3FY21; results beat estimates

IT major Tata Consultancy Services (TCS) today announced further interim dividend of Rs 6 per equity share along with posting better than expected financial results for fiscal third quarter. TCS had announced an interim dividend of Rs 5 per equity share in the first quarter, and Rs 12 per equity share in the second quarter. Altogether, the IT Major has so far announced interim dividends of Rs 23 per equity share so far. The third interim dividend will be paid on Wednesday, 3 February 2021 to the equity shareholders of the company.

TCS — India’s largest software services company — on Friday reported 7.17 per cent on-year rise in the consolidated net profit to Rs 8,727 crore for the third quarter ended December 31, 2020. It had posted a net profit of Rs 7,504 crore in the second quarter. The company’s revenue grew 5 per cent on-year to Rs 42,706 crore for third quarter of the current fiscal from Rs 40,672 crore in the corresponding quarter of the previous year.

TCS shares have rallied 14.86 per cent in the October-December quarter. In comparison, the Nifty 50 index grew 23.03 per cent during the quarter under review. Today, TCS share price rallied 3% ahead of the results announcement to Rs 3122 per share. The analysts had expected the revenue and profit growth of TCS to sustain, as indicated by large deal wins and the jump in stock prices in the past few months. However, wage hike and large deal costs were also seen as factors that could prevent the spike in profits in a short-term.

“Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS. Cloud is enabling a new class of boundaryless organizations, that can seamlessly partner and collaborate within larger ecosystems to create innovative purpose-driven offerings to customers, he added.

TCS added 15,721 employees to make a total headcount of 4.69 lakh. It apprised that the total women in the workforce is 36.4 per cent and the IT Services attrition rate fell to a new all-time low at 7.6 per cent.