TCS announces Rs 16,000-cr buyback plan, net profit up 4.9% at Rs 8,433 cr in Sep quarter

Mumbai: India’s largest software services firm Tata Consultancy Services on Wednesday reported 4.9 percent rise in consolidated net profit to Rs 8,433 crore for the September 2020 quarter, and announced up to Rs 16,000 buyback plan. The net profit excluded Rs 1,218 crore-provision towards a legal claim. Including this number, the net profit was at Rs 7,475 crore, TCS said in a regulatory filing. TCS had registered a net profit of Rs 8,042 crore in the September 2019 quarter. Its revenue grew three percent year-on-year to Rs 40,135 crore for the just-ended quarter from Rs 38,977 crore in the year-ago period. The filing said the Board has approved a buyback plan of up to Rs 16,000 crore, priced at Rs 3,000 per equity share. This is 9 percent higher than the closing price of TCS shares on BSE on Wednesday. TCS shares closed at Rs 2,737.4 apiece on Wednesday. “The Board has approved a proposal to buy back up to 5,33,33,333 equity shares of TCS, being 1.42 percent of the total paid-up equity share capital, at Rs 3,000 per equity share for an aggregate amount not exceeding Rs 16,000 crore…,” it said. The company has also announced an interim dividend of Rs 12 per share. “The strong order book, a very robust deal pipeline, and continued market share gains give us confidence for the future,” TCS CEO and Managing Director Rajesh Gopinathan said.