TCS reported Rs 40,135 crore in operating income in the quarter ended September 30
Tata Consultancy Services (TCS), the country’s largest software services company, announced on Wednesday a share buyback worth up to Rs 16 billion. The buyback comes at a time when TCS parent Tata Sons is locked in a fight with one of its oldest shareholders, Shapoorji Pallonji Group, who recently said “a separation from the Tata Group is necessary.” The TI principal also reported a net profit of Rs 7,475 crore in the July-September period, missing analyst estimates.
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In an after-hours regulatory filing, the TI leader said his board approved a plan to buy back 5.33 crore of the company’s shares at Rs 3,000 each, which is equal to 1.42% of its paid-in share capital, subject to shareholder approval.
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TCS reported a net profit of Rs 7,475 crore in the July-September period, marking an increase of 6.66 percent compared to the previous quarter.
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“Driving accelerated business value realization from our clients’ digital investments has resulted in broad-based revenue growth. Strong order book, very strong deal portfolio, and continued market share gains give us confidence to the future, “said Rajesh Gopinathan, CEO and Managing Director, TCS.
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On average, analysts were expecting a profit of Rs 7.805 crore, Reuters news agency reported citing data from Refinitiv.
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The company set aside Rs 1,218 crore on one-off items related to a lawsuit in the US.
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Mumbai-based TCS reported Rs 40,135 crore in operating income in the quarter ended September 30, marking a sequential (quarter-over-quarter) increase of 4.73% compared to Rs 38,322 crore in the April-June period. .
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Revenue in constant currency terms grew 4.8 percent sequentially and 7.2 percent in dollar terms, the country’s second-most valuable company said.
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Tata Consultancy Services announced an interim dividend of Rs 12 per share, payable on November 3.
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“The timing of the buyback has been triggered in part due to the ongoing dispute between Tata and the Mistry group, with the Mistry group seeking to exit its Tata Sons holdings,” said Jyoti Roy, analyst at Angel Broking.
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Shares of TCS closed 0.78 percent higher at Rs 2,737.40 each on the BSE before the announcement, in line with a 0.77 percent gain on the benchmark S&P BSE Sensex index. The stock registered a record 2,769 rupees during the session.
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