Tata Consultancy Services (TCS) is set to consider a share buyback as part of its upcoming board meeting on October 11, 2023. The decision was announced by the company in a statement. Prior to this buyback announcement, TCS shares closed nearly 1 percent higher at Rs 3,621.25 on the National Stock Exchange (NSE).
As of June 2023, TCS maintained a healthy cash balance of Rs 15,622 crore and had no outstanding debt. In 2022, TCS conducted its last share buyback, which amounted to Rs 18,000 crore. This buyback involved 4 crore shares priced at Rs 4,500 each, with a face value of Re 1 per share.
Earlier in the year, two other major IT companies, Infosys and Wipro, also completed share buyback programs. Infosys concluded its buyback in February 2023, acquiring 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 deliberate on the share buyback proposal on the same day the company is scheduled to announce its Q2FY24 financial results. Analysts anticipate sequential growth in TCS's profit after tax (PAT) and revenue. The company is expected to outperform its peers in terms of margin performance, primarily due to cost reduction initiatives. TCS has also secured several large cost take-out deals, likely resulting 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, while its consolidated revenue saw a nearly 13 percent YoY rise, reaching 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's advisable to consult with certified experts before making any investment decisions.
As of June 2023, TCS maintained a healthy cash balance of Rs 15,622 crore and had no outstanding debt. In 2022, TCS conducted its last share buyback, which amounted to Rs 18,000 crore. This buyback involved 4 crore shares priced at Rs 4,500 each, with a face value of Re 1 per share.
Earlier in the year, two other major IT companies, Infosys and Wipro, also completed share buyback programs. Infosys concluded its buyback in February 2023, acquiring 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 deliberate on the share buyback proposal on the same day the company is scheduled to announce its Q2FY24 financial results. Analysts anticipate sequential growth in TCS's profit after tax (PAT) and revenue. The company is expected to outperform its peers in terms of margin performance, primarily due to cost reduction initiatives. TCS has also secured several large cost take-out deals, likely resulting 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, while its consolidated revenue saw a nearly 13 percent YoY rise, reaching 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's advisable to consult with certified experts before making any investment decisions.
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