TCS to consider share buyback along with Q2 results, board meeting on Oct 11

TCS share buyback: Tata Consultancy Services’ board will consider share buyback next week. Its last share buyback of Rs 18,000 crore concluded in 2022.

Tata Consultancy Services will consider buyback of equity shares. TCS board will meet on October 11, 2023 to consider the decision, the company said in a statement. Ahead of the buyback announcement, TCS shares ended nearly 1 percent higher at Rs 3,621.25 on NSE.

As of June 2023, TCS had a cash balance of Rs 15,622 crore, and the IT major is debt free.

TCS launched its last share buyback in the year 2022 when the IT major bought back shares worth Rs 18,000 crore. The issue size comprised of 4 crore shares priced at Rs 4,500 apiece with face value of Re 1 per share.

Also Read | Taking Stock: Market cheers RBI decision; Sensex up 364 pts, Nifty at 19,650

Earlier this year, two other major IT companies completed share buybacks. In February 2023, Infosys ended its buyback after purchasing 6.04 crore of its shares for Rs 9,300 crore. In June, Wipro announced a Rs 12,000 crore share buyback, its largest ever.

Also Read | Festive season set to light up consumer durables; Crompton, Havells among top picks

The TCS board is set to deliberate on a share buyback proposal on the same day the IT major is slated to announce its Q2FY24 financial results.

Analysts expect TCS to deliver sequential growth in profit after tax (PAT), revenue. In terms of margin performance, it is expected to outperform other tier-1 peers. Since the company has announced multiple large cost take-out deals, it is likely to result in robust total contract value (TCV) bookings for TCS.

In the previous quarter, TCS reported a nearly 17 percent year-on-year (YoY) rise in consolidated net profit to Rs 11,074 crore. Its consolidated revenue increased nearly 13 percent YoY to Rs 59,381 crore.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.