TCS Gears Up for September Quarter Earnings and Share Buyback Announcement

TCS Gears Up for September Quarter Earnings and Share Buyback Announcement
TCS Gears Up for September Quarter Earnings and Share Buyback Announcement
TCS Gears Up for September Quarter Earnings and Share Buyback Announcement
TCS Gears Up for September Quarter Earnings and Share Buyback Announcement

TCS Gears Up for September Quarter Earnings and Share Buyback Announcement

TCS Gears Up for September Quarter Earnings and Share Buyback Announcement

TCS Gears Up for September Quarter Earnings and Share Buyback Announcement

Tata Consultancy Services (TCS), one of India’s leading IT giants, is all set to unveil its earnings for the September quarter. Alongside these results, the market is eagerly anticipating the outcome of TCS’s board meeting, where a significant share buyback announcement is on the agenda. TCS had previously announced that its board of directors would consider and approve a share buyback during the meeting scheduled for October 11, 2023.

Anticipated Buyback Details

Market experts are closely watching TCS’s share buyback, with expectations of the buyback price to fall within the range of ₹4,300 to ₹4,500 per share. The TCS buyback size is anticipated to be nearly ₹18,000 crore. If this materializes, it will mark the fifth share buyback by the Tata group company in the last six years.

TCS has a history of share buybacks, having undertaken four in the past six years. In May 2017, TCS initiated a buyback of shares worth ₹16,000 crore at a premium of around 18 percent. In August 2018 and November 2020, the company again declared buybacks, each worth ₹16,000 crore, at premiums of 18 percent and 10 percent, respectively. In February 2022, TCS announced a buyback of shares worth ₹18,000 crore at a premium of nearly 17 percent.

Impact on Other IT Majors

Following the TCS buyback announcement, other major IT companies like Infosys, Wipro, and HCL Technologies have followed suit. After TCS’s buyback in 2017, Infosys declared its own buyback, offering a premium of nearly 20 percent. Wipro’s buyback, announced in September 2017, carried a premium of 23 percent. In June 2019, Wipro once again announced a buyback at ₹325 per share, delivering a premium of nearly 16 percent. The company declared another buyback at ₹400 per share in December 2020, offering a premium of around 6 percent. In June 2023, Wipro declared a buyback at ₹445 per share, delivering a substantial 20 percent premium.

In May 2017, HCL Tech declared a buyback of shares at ₹500 per share, providing a 20 percent premium. The company repeated the buyback in August 2018, offering shares at ₹550 each with a 16 percent premium.

As the TCS earnings report for Q2 2023 and the buyback announcement loom, investors and market watchers are poised to track these developments closely to gauge their potential impact on the IT sector and stock markets.

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