Stock in focus: TCS to declare Q2FY25 results today. To consider second interim dividend

Tata Consultancy Services (TCS) share price will remain on investors’ radar on Thursday as the company will declare its earnings for the second quarter of FY25. The Tata Group company will also likely announce an interim dividend today.

TCS Q2 results date is today, October 10. The largest IT services company in India, TCS, will announce its September quarter results after the market hours.

“...a meeting of the Board of Directors of Tata Consultancy Services Limited is scheduled to be held on Thursday, October 10, 2024, inter alia to approve and take on record the audited condensed standalone financial results of the Company under Indian Accounting Standards (Ind AS) for the quarter and six month period ending September 30, 2024,” TCS said in a regulatory filing on September 30.

The Tata Group company’s board will approve and take on record the audited condensed consolidated financial results of the Company and its subsidiaries, it added.

Moreover, TCS board will also consider declaration of a second interim dividend to the equity shareholders today. The company has fixed October 18 as the record date for the dividend.

“The second interim dividend, if declared, shall be paid to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Friday, October 18, 2024, which is the Record Date fixed for the purpose,” TCS said.

TCS Dividend History

TCS dividend to be announced today will be the second dividend for the financial year 2024-2025. The Tata Group company earlier paid an interim dividend of ₹10 per share. The record date for the first interim dividend for FY25 was July 19.

In FY24, TCS distributed a total dividend payout of ₹46,223 crore to its shareholders. In April 2024, the company announced a final dividend of ₹28 per share for the fiscal year. This was in addition to an interim dividend of ₹9 per share and a special dividend of ₹18 per share issued earlier in the year.

TCS had also declared interim dividends of ₹9 per share in both the first and second quarters. Furthermore, the IT giant conducted a share buyback program worth ₹17,000 crore during FY24.

In FY23, TCS paid a total of ₹115 per share dividend, worth ₹33,306 crore.

TCS Q2 Results Preview

The IT bellwether TCS is expected to post decent earnings growth led by ramp-up of key deals, especially the BSNL one.

TCS Q2 revenue is estimated to see a growth of 2.2% to ₹64,011 crore from ₹62,613 crore in the previous quarter, according to a poll of six brokerages. Revenue in USD terms is likely to increase 2% to $7,648 million from $7,505, quarter-on-quarter (QoQ). Pick up in US BFSI project ramp ups and the ongoing BSNL deal are expected to support TCS Q2 revenue growth.

The company’s net profit in Q2FY25 is expected to rise 3.5% to ₹12,461 crore from ₹12,040 crore, QoQ.

At the operational level, TCS Q2 earnings before interest and taxes (EBIT) is likely to rise 3.1% to ₹15,916 crore from ₹15,442 crore, QoQ. While Motilal Oswal estimates EBIT margin to decline by 20 bps, ICICI Securities expects margin to expand by 49 bps QoQ in absence of wage hikes.

Going forward, analysts believe focus would be on Europe outlook, which remains challenging despite multiple mega deal wins over the past year. Commentary on FY25 demand environment especially discretionary spending, deal ramp up visibility, vertical commentary and margins outlook will be watched out.

TCS Share Price

On Wednesday, TCS shares ended 0.02% higher at ₹4,252.30 apiece on the BSE.

TCS stock price has remained muted recently as it has fallen 4.5% in one month, but gained over 6.7% in six months.

TCS share price has risen more than 12% year-to-date (YTD) and nearly 17% in the past one year.

Read all Q2 results

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