TCS Deliberates Share Buyback in Tandem with Q2 Earnings, Board Meet on Oct 11
Tata Consultancy Services (TCS) has announced plans to consider a buyback of its equity shares. The TCS board is scheduled to meet on October 11
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Tata Consultancy Services (TCS) has announced plans to consider a buyback of its equity shares. The TCS board is scheduled to meet on October 11, 2023, to deliberate on this decision, as stated by the company in an official statement. Prior to the buyback news, TCS shares closed nearly 1 percent higher at Rs 3,621.25 on the NSE.
TCS had previously conducted a share buyback in 2022, amounting to Rs 18,000 crore. The buyback comprised 4 crore shares priced at Rs 4,500 each, with a face value of Re 1 per share.
Earlier this year, two other prominent IT companies, Infosys and Wipro, completed their share buyback programs. In February 2023, Infosys concluded its buyback, repurchasing 6.04 crore shares for Rs 9,300 crore. In June, Wipro initiated its largest-ever share buyback, amounting to Rs 12,000 crore.
The TCS board's discussion on the share buyback proposal coincides with the release of the company's Q2FY24 financial results. Analysts anticipate sequential growth in profit after tax (PAT) and revenue for TCS. The company is also expected to outperform other tier-1 peers in terms of margin performance. TCS has announced multiple significant cost take-out deals, which are likely to result in robust total contract value (TCV) bookings.
In the previous quarter, TCS reported a nearly 17 percent year-on-year (YoY) increase in consolidated net profit, reaching Rs 11,074 crore. Its consolidated revenue also saw a nearly 13 percent YoY rise, amounting to Rs 59,381 crore.
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