Despite a decline in earnings, TCS has announced a final dividend of ₹30 per share. In FY25, the company's revenue exceeded $30 billion.
Dividend: Tata Consultancy Services (TCS), India's largest IT services provider, has declared a final dividend of ₹30 per share for the fiscal year 2024-25. This announcement will be effective five days after the conclusion of the company's 30th Annual General Meeting (AGM). However, the record date and payment date have not yet been announced.
Dividend Yield 1.79%, Payout Exceeds FY24
Based on the current market price, TCS's dividend yield is approximately 1.79 percent. In FY24, the company paid a total dividend of ₹73 per share, while in FY23, this figure reached ₹115, including a special dividend of ₹67. This year's dividend payout exceeds that of FY24.
Q4 Earnings Decline, Performance Weaker Than Expected
TCS's fourth-quarter (Q4 FY25) results were weaker than expected. The company's net profit decreased by 1.7% to ₹12,224 crore, compared to ₹12,434 crore in the same quarter last year. Revenue increased by 5.2% to ₹64,479 crore, but this fell short of Bloomberg's estimate of ₹64,848 crore.
6% Growth for the Year, Crossing $30 Billion
In fiscal year 2025, the company's total income increased by 6% to ₹2,55,342 crore, and net profit rose by 5.8% to ₹48,553 crore. During this period, TCS achieved the $30 billion revenue milestone for the first time, demonstrating its international strength.
Uncertainty in global markets, delays in client decision-making, and budgetary caution did impact the company's performance. However, despite this, the company has maintained its b dividend policy, reassuring investors. This move by TCS is a positive sign for long-term investors.
