TCS shares are in the spotlight ahead of its quarterly earnings set to be released on January 09. All eyes are on the key dividend announcement. The stock is trading 0.5%% lower after a 2% fall last week. The TCS results will give a hint to the investors on the quarterly performance of the information technology (IT) sector and the overall outlook for the IT Sector in terms of deal wins and hirings.
Here are 5 things to know ahead of Q3 numbers TCS expected to report muted growth in Q3
Given that Q3 is typically a slow quarter for the industry because of Christmas and holidays in major regions like North America, analysts indicated that the company is likely to post muted revenue growth. According to brokerage firms, the technology giant is anticipated to enhance its margins by 20-40 basis points because of operational efficiencies and favourable cost structures.
TCS to announce dividend
TCS will announce a third interim dividend for its shareholders in FY25 while releasing its fiscal third-quarter earnings. The company has fixed January 17 as the record date for the third interim dividend, if declared. The company announced a dividend of Rs 10 per share in Q2 FY24, with a record date of October 18 and a payment date of November 05.
Also ReadCatch all the live updates on TCS on our live blog TCS’ performance in Q2
The company reported a growth of 5% year-on-year in its net profit standing at Rs 11,909 crore in Q2 FY25, against Rs 11,342 crore in the same quarter a year ago. Its revenue from operations in the previous quarter came in at Rs 64,259 crore, an increase of 7.7% on year compared with Rs 59,692 crore in Q2 FY24. In constant currency (CC) terms, the company’s revenue rose 5.5%. “We saw the cautious trends of the last few quarters continue to play out in this quarter as well,” said K Krithivasan, Chief Executive Officer and Managing Director in the previous quarter.
TCS stock movement
The stock of TCS has fallen 4.5% from October 01, 2024, to December 31, 2024. The scrip has decreased by 0.5% in the last five trading days. It has wiped out more than 7% in the past one month. However, the stock has risen 3.4% in the last six months and 0.5% from year to date.
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