Tata Consultancy Services (TCS), India's biggest IT company, on Wednesday approved a share buyback proposal for an aggregate amount not exceeding Rs 16,000 crore. The IT major plans to buy back up to 5.33 crore equity shares of the company. TCS proposed to carry out the buy back at Rs 3,000 per share, which is at 9.6 per cent premium to today's closing price of Rs 2,737.40.
"The buyback is subject to approval of the Members by means of a special resolution through a postal ballot. The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the buyback regulations," TCS said in a regulatory filing.
TCS today reported a 7.05 per cent fall in its net profit to Rs 7,475 crore for the September quarter as against Rs 8,042 crore in the same quarter last year. The company also declared an interim dividend of Rs 12 per equity share of Re 1 each of the company. The consolidated revenue from operations stood at Rs 40,135 crore, up 3 per cent on a year-on-year basis.
Commenting on the TCS Q2 performance, CEO and MD Rajesh Gopinathan, said: "What we are witnessing right now is the start of the first phase of a multi-year technology transformation cycle. In the current phase, enterprises are building a cloud-based foundation that will serve as a resilient, secure and scalable digital core. In subsequent phases, we will see the native capabilities of these platforms being utilised to create innovative new business models and differentiated customer experiences. Our investments in building deep expertise on these platforms, in research and innovation and in industry-specific solutions leveraging our contextual knowledge, position us very strongly to benefit fully from this secular demand driver."
Meanwhile, TCS share today gained 0.16 per cent to touch a new 52-week and an all-time high of Rs 2,769, over its last closing of Rs 2,716.15 on BSE. The stock opened at Rs 2,738 and also touched an intraday low of Rs 2,703 during the session.