HCL Tech dividend: Stock to turn ex-dividend on Thursday; payment date, dividend history & more

Shares of IT major HCL Technologies will turn ex-dividend on Thursday. The IT major had announced an interim dividend of Rs 10 per share while announcing its quarterly results last week.  The record date for the dividend is Friday, January 20.

The dividend would be paid to those shareholders, whose names will appear on the register of members of the company or in the records of the depositories, as beneficial owners of the shares, on Friday.  The dividend will be paid to eligible shareholders on February 1. The IT major had announced Rs 10 dividend each in the last two quarters.

Data available with corporate database AceEquity suggests HCL Tech’s dividend yield stood at 3.78 per cent as of Tueday’s close, which was highest among peers. Infosys’ dividend yield stood at 2.01 per cent, TCS’ 1.27 epr cent and Wipro’s at 1.51 per cent.

For FY22, HCL Tech paid a total of Rs 42 per share dividend (yield at 3.61 per cent), which amounted to Rs 11,391 crore. Among peers, TCS declared a total dividend of Rs 43 per share (yield 1.15 per cent) for FY22, totalling Rs 7,686 crore. Wipro declared Rs 6 per share in dividend for FY22, with dividend amount standing at Rs 3,289 crore as per AceEquity. Its dividend yield stood at 1.01 per cent.  Infosys’ Rs 31 per share (yield 1.63 per cent), totalling Rs 6,309 crore, as per AceEquity.

HCL Tech’s December quarter results were a beat across fronts, but the IT major lowered its FY23 guidance towards the lower-end. Analysts largely have a neutral stance on the stock, with most price targets suggesting limited upside ahead.  The average target price on the stock stood at Rs 1,174 on the stock, suggesting a potential 4 per cent upside, data available with Trendlyne suggested. Overall, the scrip has 15 ‘Hold’ calls and ’25’ buy or strong buy calls, as per Trendlyne data.

HCL Tech’s December quarter revenue stood at $3,244 million, up 5 per cent QoQ in constant currency (CC) terms, which was ahead of the Bloomberg consensus estimate of 3 per cent QoQ CC growth.  Growth was strong in the software business (12 per cent of revenue) at 30.5 per cent QoQ CC while core services business reported 2.2 per cent QoQ CC growth, Nomura India said adding that EBIT margin at 19.6 per cent was also ahead of consensus’ 18.7 per cent estimate, led by a strong 160 bps jump in IT software margin.

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