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TCS To Buy Back Shares Worth Rs 16,000 Crore, Quarterly Profit Misses Estimate
07 Oct 2020, 07:24 PM IST 
TCS reported Rs 40,135 crore in revenue from operations in the quarter ended September 30
- Tata Consultancy Services' board approved a plan to buy back 5.33 crore shares at Rs 3,000 apiece, amounting to 1.42 per cent of its paid-up equity capital, subject to shareholders' approval, the IT bellwether said in a regulatory filing after market hours.
- TCS reported a net profit of Rs 7,475 crore in the July-September period, marking a rise of 6.66 per cent compared to the previous quarter.
- Analysts on average had expected a profit of Rs 7,805 crore, news agency Reuters reported citing Refinitiv data.
- "Driving accelerated business value realization of our customers' digital investments has resulted in broad-based revenue growth. The strong order book, a very robust deal pipeline, and continued market share gains give us confidence for the future," said Rajesh Gopinathan, CEO and managing director, TCS.
- Mumbai-based TCS reported Rs 40,135 crore in revenue from operations in the quarter ended September 30, marking a sequential (quarter vs quarter) increase of 4.73 per cent compared to Rs 38,322 crore in the April-June period.
- Revenue in constant currency terms grew 4.8 per cent sequentially, and 7.2 per cent in dollar terms, the country's second most valuable company said.
- The company set aside Rs 1,218 crore under exceptional items related to a lawsuit in the US.
- Tata Consultancy Services announced an interim dividend of Rs 12 per share, payable on November 3.
- "The timing of the buyback has been partly triggered due to the ongoing feud between Tata and the Mistry group, with the Mistry group looking to exit its Tata Sons holdings," said Jyoti Roy, an analyst at Angel Broking.
- TCS shares ended 0.78 per cent higher at Rs 2,737.40 apiece on the BSE ahead of the announcement, in line with a 0.77 per cent gain in the benchmark S&P BSE Sensex index. The stock registered a record high of Rs 2,769 during the session.
