Tata Consultancy Services (TCS), a prominent name in the Indian IT industry, is gearing up to announce its third interim dividend for FY25. This declaration comes alongside the release of its quarterly results, which are expected post-market hours. To provide further clarity, TCS's leadership team will hold a media briefing at 5:30 PM, followed by a conference call at 7 PM to share financial highlights and strategic updates.

TCS Dividend History: Rewarding Shareholders Generously

TCS has built a reputation for consistently rewarding its investors. For FY25, the company has already announced dividends totaling ₹20 per share, with ₹10 each declared in Q1 and Q2. If the third interim dividend is confirmed, shareholders recorded as eligible by Friday, January 17, 2025, will receive the payout.

In FY24, TCS demonstrated its commitment to shareholder wealth with:

• A final dividend of ₹28 per share declared in April 2024.
• Interim dividends of ₹9 each for Q1 and Q2.
• An interim dividend of ₹9 per share and a special dividend of ₹18 per share following Q3 results.

Additionally, the company executed a ₹17,000 crore share buyback program, bringing the total distribution to ₹46,223 crore for FY24.

Looking back further:

• In FY23, TCS declared ₹115 per share in cumulative dividends, amounting to ₹33,306 crore with a dividend yield of 3.59%.
• Historical payouts include ₹7,686 crore in FY22, ₹8,510 crore in FY21, and ₹25,125 crore in FY20.

Expectations from Q3 FY25 Results

Analysts project a steady performance for TCS in Q3 FY25, with flat constant currency (CC) revenue growth and a slight decline in dollar revenue due to reduced contributions from the BSNL deal and seasonal furloughs. However, operational efficiencies are expected to drive margin expansion by 20-40 basis points.

According to Nuvama, TCS is likely to report a profit after tax of ₹12,390 crore and a revenue of ₹64,129 crore. Investors are closely watching the BSNL deal outlook and the sustainability of margins in the coming quarters.

What This Means for Investors

TCS has consistently set benchmarks for delivering robust shareholder returns through dividends and buybacks. The upcoming dividend announcement and Q3 results will reaffirm the company’s legacy and provide insights into its growth trajectory amid evolving market dynamics.

Investors can look forward to TCS's continued focus on operational excellence and strategic deal wins, which remain critical to sustaining its leadership in the IT sector.