TCS interim dividend at Rs 12 a share

Mumbai: Tata Consultancy Services declared an interim dividend of Rs 12 per equity share amounting to Rs 4,503 crore on Tuesday, in a bonanza for shareholders, chiefly parent company Tata Sons which holds about 72 per cent stake in India’s top tech services provider.

The specially-convened board meeting to discuss the interim dividend came amid a government plan to phase out the dividend distribution tax and to tax dividends in the hands of shareholders effective April 1. Including the dividend distribution tax, the dividend amount comes to Rs 5,400 crore.

Including Tuesday’s payout, the company has so far in the fiscal year returned cash worth more than Rs 29,900 crore to shareholders. The latest dividend distribution will be completed on March 24. Cash dividends from TCS have helped promoter Tata Sons fund debt and invest in other businesses. TCS is one of the most valued companies on Indian stock exchanges.


TCS is key

Tata Sons has heavily depended on cash from TCS or on the group selling shares of TCS to fund its other flagship businesses.

The total debt of 11 major listed Tata Group companies — not including financing companies and holding company Tata Sons — stood at Rs 2.22 lakh crore in financial year 2018, increasing to Rs 2.46 lakh crore in fiscal year 2019.

In the past three years, TCS distributed total dividend worth Rs 30,089 crore. In the past five years, it has distributed Rs 54,133 crore.

TCS reported a profit of Rs 31,472 crore on revenue of Rs 146,463 crore in fiscal year 2019. It had cash reserves of Rs 72,240 crore by the end of March 2019.