LTTS Q2 Results and Dividend: PAT up 4% vs Q1, Rs 18/share payout—Key takeaways

Vadodara-headquartered IT firm L&T Technology Services (LTTS) staged a steady financial performance for the July-September period on Friday, reporting a 4.1 per cent quarter-on-quarter rise in its net profit and declaring a dividend of 900 per cent.

LTTS results come amid a season full of hits and misses for the country's IT space so far.

Read on to learn more about the IT firm's latest earnings report.

L&T Technology Services Q2 Earnings: Top and bottom line see mild growth

L&T Technology Services registered a consolidated net profit of Rs 329 crore for the quarter ended September 30, higher than a net profit of Rs 316 crore for the previous three months, according to a regulatory filing.

Its consolidated revenue grew 4.0 per cent sequentially to Rs 2,980 crore.

L&T Technology Services Q2 Results: Operational performance

LTTS clinched Rs 398 crore in second-quarter earnings before interest and taxes (EBIT), a rise of 4.5 per cent over the April-June period.

Its margin improved by 10 basis points -- or 0.1 percentage point -- to 13.4 per cent, the filing showed.

L&T Tech Services (LTTS): Dividend per share

LTTS has announced a dividend of Rs 18 per share with a record date of October 27.

This translates to a 900 per cent payout given the face value of Rs 2 per share.

LTTS shares

The stock ended 1.0 per cent lower at Rs 4,150.6 apiece on BSE ahead of the earnings announcement.

At this level, LTTS shares have declined 11.5 per cent so far this year, underperforming an 8.3 per cent rise in the Nifty50 index.

Here are answers to a few frequently asked questions (FAQs) about dividends:

What is a dividend?

A dividend is a type of corporate action that lets a listed company to share a portion of its profits with its shareholders.

What is a dividend's record date?

The record date is a crucial cut-off date that a listed company sets to determine which shareholders are eligible to receive a declared dividend.

What is a dividend's ex-date?

It is the first day when the stock trades without the value of the upcoming dividend.

An ex-date is different from a record date. If you buy the stock on or after the ex-dividend date, you will not get the dividend.

Only shareholders owning the stock by the record date qualify.