HCL Tech's gift to investors; third interim dividend of ₹10 per share fixed

Digital Desk:  HCL Technologies declared a third interim dividend of $10 per equity share for the fiscal year FY23 on Wednesday. The IT behemoth has also set October 20 as the record date for assessing who is entitled for dividend payouts. 

HCL Tech anticipates paying the dividend on November 2nd. HCL Tech is one of the dividend kings. It has a solid track record of paying out large dividends to its shareholders. 

According to the regulatory filing, HCL Tech's board of directors has declared a third interim dividend of $10 per equity share with a face value of $2 for the fiscal year 2022-23.

It said, "The Board of Directors has confirmed the record date of October 20, 2022, for the payment of the aforementioned interim dividend. The mentioned interim dividend will be paid on November 2, 2022." 

Including the third interim dividend, HCL Tech has now declared a total dividend of 38 per share in FY23. 

HCL Tech's dividend yield is now about 4%. 

HCL Tech has already paid the first interim dividend of 18 per share for the current fiscal year in April, and the second interim dividend of 10 per share was given in April of this year. The sum of these two dividends is 1400% or 28 per share.

The corporation paid an equity dividend of 2,100% to 42 per share in the previous fiscal year FY22. The total dividend amount was Rs. 11,392 crore. 

HCL Tech had a consolidated net profit of 3,489 crore in the second quarter of FY23, up 6% from 3,259 crore in the same period previous year (Q2FY22). Consolidated sales was 24,686 crore, up 19.5% year on year and 5.2% quarter on quarter. 

In constant currency, the company's revenue increased by 15.8% year on year and 3.8% quarter on quarter. HCL Tech's sales was $3,082 million, up 10.4% year on year and 1.9% quarter on quarter.

HCL Tech expects services revenues to be 16%-17% higher year on year in constant currency in FY23, while revenue forecast has been raised to 13.5%-14.5% higher year on year in constant currency. For the current fiscal year, EBIT margin guidance has been revised to 18%-19%.

C Vijaykumar, CEO and Managing Director of HCL Tech, stated, "Our bookings and pipeline remain very high, bode well for our future growth. These reflect our ongoing efforts to improve outcomes for all of our stakeholders. Our new brand positioning of Supercharging Progress has been well welcomed, and I am convinced that it will assist us in meeting our strategic objectives." 

HCL Tech shares closed at 951.65 on the BSE, up 1.39%. The company's market capitalization is approximately Rs. 2,58,245.94 crore.