Tata Consultancy Services Ltd (TCS) said on Friday that its FY2024 shareholder payment, which comprised dividends and a repurchase of shares, was Rs 46,223 crore.
TCS declared a final dividend of Rs 28 per share on Friday. This was on top of the dividends of Rs 45 per share that were declared during the fiscal year. During the fiscal year, TCS completed the repurchase of Rs 17,000 crore worth of shares and paid Rs 73 in dividends per share.
In FY24, the large IT company had free cash flow of Rs 44,282 crore. Therefore, 104% of TCS's annual FCF was distributed to shareholders.
TCS has a policy of giving its stockholders 80–100% of its free cash flow (FCF). Its total payments in FY23 amounted to 11% of FCF. TCS did not repurchase any shares in FY23; nonetheless, in the preceding fiscal year, the business distributed a dividend of Rs 115 per share, totaling Rs 33,306 crore. Thus, TCS's FY24 shareholder payment is 38% more than that of FY23.
In 2022, TCS announced its most recent share buyback. TCS distributed dividends of Rs 7,686 crore in FY22 (with an additional Rs 18,000 crore for share buybacks), Rs 8,510 crore in FY21, and Rs 25,125 crore in FY20.
TCS reported a 9.14% YoY increase in consolidated net profit for the March quarter, totaling Rs 12,434 crore. In comparison, the profit for the same period last year was Rs 11,392 crore. Following the IT industry, marketers anticipated that the biggest software exporter would announce a 5–6% YoY increase in net profit.
