Tata Consultancy Services has announced a significant dividend distribution for its shareholders, declaring both regular and special dividends. The IT services giant has approved a regular dividend of ₹11.00 per share along with a special dividend of ₹46.00 per share.

Dividend Distribution Details

The dividend announcement includes two components that will benefit eligible shareholders:

Shareholder Returns

The combined dividend payout of ₹57.00 per share represents a substantial return to shareholders. The regular dividend of ₹11.00 per share reflects the company's consistent dividend policy, while the special dividend of ₹46.00 per share indicates additional value distribution beyond the regular payout structure.

This dividend declaration demonstrates the company's commitment to sharing profits with shareholders through direct cash distributions. Eligible shareholders will receive the total dividend amount of ₹57.00 per share, combining both the regular and special dividend components.

Corporate Action Summary

The dividend announcement encompasses both regular and special components, providing shareholders with enhanced returns. The regular dividend maintains the company's ongoing commitment to consistent shareholder distributions, while the special dividend represents an additional value-sharing initiative.

Tata Consultancy Services , Tata Group's largest company and India's largest IT services provider, reported Q3 results on January 12 that were largely in line with street expectations across most parameters. While revenue growth remained steady and margins held firm, one-time costs significantly impacted the company's net profit for the quarter.

Financial Performance Overview

The company's quarterly performance reflected mixed results, with revenue meeting projections but profitability facing headwinds from regulatory and legal provisions.

One-time Impact on Profitability

Net profit for the quarter declined 12% sequentially from ₹12,075 crore in September to ₹10,657 crore. This decline was primarily attributed to significant one-time charges that affected the bottom line.

These provisions totaling over ₹3,100 crore substantially impacted the company's profitability for the quarter, despite operational performance remaining stable.

AI Services Drive Growth Momentum

TCS highlighted significant progress in artificial intelligence services during its recent analyst day. The company has successfully executed over 5,000 AI engagements, demonstrating strong client adoption of AI-powered solutions.

The management emphasized that AI services are growing significantly ahead of overall revenue growth, with 16.3% sequential growth and 38.2% year-on-year growth in constant currency terms.

New Age Services Outlook

TCS expressed confidence in its new age services portfolio, projecting these offerings to contribute nearly $11 billion in annualized revenue. This represents a substantial portion of the company's revenue base and indicates strong positioning in emerging technology areas.

Market Response

Shares of TCS recovered from intraday lows to close 0.8% higher at ₹3,233.30 before the earnings announcement, suggesting investor confidence despite the one-time profit impact.