June 25, 2022

TCS Q3 net profit jumps 12.27% to Rs 9,769 crore; buyback plan worth Rs 18,000 crore approved – Times of India

NEW DELHI: India’s largest software services firm Tata Consultancy Services (TCS) on Wednesday reported 12.27 per cent rise in consolidated net profit for the third quarter (Q3) ended December 31, 2021.
The company had posted a net profit of Rs 8,701 crore in the same period last year.
In terms of quarter-on-quarter growth, TCS net profit jumped 1.5 per cent from Rs 9,624 crore posted in previous quarter ended September 30, 2021.
The company’s board also approved a buyback plan worth Rs 18,000 crore for its shareholders at Rs 4,500 per scrip.
The offer price of Rs 4,500 per share is about 16.6 per cent higher than today’s closing level of Rs 3,857.25 on the BSE.
“The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism…The Buyback is subject to approval of the shareholders by means of a special resolution through a postal ballot,” it added.
As per the filing, promoter companies held 72.19 per cent share in TCS as on January 7, 2022.
Revenue of the Mumbai-based firm grew 16.3 per cent in the quarter under review to Rs 48,885 crore from Rs 42,015 crore in the corresponding period last fiscal.
TCS CEO and managing director Rajesh Gopinathan said: “Our continued growth momentum is a validation of our collaborative, inside-out approach to our customers’ business transformation needs. Customers love our engagement model, our end-to-end capability, and our can-do approach to problem solving.”
“While mapping out their innovation and growth journeys, we are also helping them execute new-age operating model transformations to support those journeys,” he added.
The company has also announced a dividend of Rs 7 per share with the record date being set as January 20, 2022, and the payment date as February 07, 2022.
It added 28,238 employees on a net basis, taking the total number of employees to 5,56,986 as on December 31, 2021.
Its IT services attrition rate (LTM) in the third quarter stood at 15.3 per cent.
TCS’ previous buyback offer of around Rs 16,000 crore had opened on December 18, 2020, and closed on January 1, 2021. Over 5.33 crore equity shares were bought back under the offer for Rs 3,000 apiece.
In 2018, TCS had undertaken a share buyback programme worth up to Rs 16,000 crore. The buyback, at Rs 2,100 per equity share, had entailed up to 7.61 crore shares. In 2017 too, TCS had taken a similar share purchase programme.
Shares of the company closed 1.5 per cent lower at Rs 3,857 on both BSE and NSE.
(With inputs from agencies)

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