Tata Consultancy Services (TCS) is set to consider a share buyback, with the company's board meeting scheduled for October 11, 2023, to discuss this decision, according to a statement by the company. TCS shares saw an increase of nearly 1 percent, closing at Rs 3,621.25 on the NSE ahead of the buyback announcement.
As of June 2023, TCS held a cash balance of Rs 15,622 crore and had no outstanding debt. TCS conducted its last share buyback in 2022, amounting to Rs 18,000 crore. This buyback consisted of 4 crore shares priced at Rs 4,500 per share, with a face value of Re 1 per share.
Earlier this year, two other prominent IT companies, Infosys and Wipro, also completed share buybacks. In February 2023, Infosys concluded its buyback by repurchasing 6.04 crore of its shares for Rs 9,300 crore. In June, Wipro announced its largest-ever share buyback worth Rs 12,000 crore.
The TCS board will discuss the share buyback proposal on the same day that the company is expected to announce its Q2FY24 financial results. Analysts anticipate TCS to report sequential growth in profit after tax (PAT) and revenue. Furthermore, it is expected to outperform other tier-1 peers in terms of margin performance. TCS's announcement of several significant cost take-out deals is likely to result in robust total contract value (TCV) bookings for the company.
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 grew by nearly 13 percent YoY to Rs 59,381 crore.
Please note that the views and investment tips expressed in this article are those of the author and do not necessarily reflect the opinions of Moneycontrol.com. It is advisable to consult certified experts before making any investment decisions.
As of June 2023, TCS held a cash balance of Rs 15,622 crore and had no outstanding debt. TCS conducted its last share buyback in 2022, amounting to Rs 18,000 crore. This buyback consisted of 4 crore shares priced at Rs 4,500 per share, with a face value of Re 1 per share.
Earlier this year, two other prominent IT companies, Infosys and Wipro, also completed share buybacks. In February 2023, Infosys concluded its buyback by repurchasing 6.04 crore of its shares for Rs 9,300 crore. In June, Wipro announced its largest-ever share buyback worth Rs 12,000 crore.
The TCS board will discuss the share buyback proposal on the same day that the company is expected to announce its Q2FY24 financial results. Analysts anticipate TCS to report sequential growth in profit after tax (PAT) and revenue. Furthermore, it is expected to outperform other tier-1 peers in terms of margin performance. TCS's announcement of several significant cost take-out deals is likely to result in robust total contract value (TCV) bookings for the company.
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 grew by nearly 13 percent YoY to Rs 59,381 crore.
Please note that the views and investment tips expressed in this article are those of the author and do not necessarily reflect the opinions of Moneycontrol.com. It is advisable to consult certified experts before making any investment decisions.
No comments:
Post a Comment