TCS shareholders cheer share buyback and strong growth
- The IT giant announced share buyback of ₹4,500 per share, which is at nearly 17% premium from previous close price.
- Following this, shares of the company rose 1.4% and among top 5 gainers on the benchmark index Nifty 50.
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AdvertisementShares of the Mumbai-based IT giant TCS climbed 1.4% in the opening trade as investors cheered the company’s December quarter earnings as well as the plan to buy back shares.
The software exporter that crossed $25 billion in annual revenue, with three months to spare in the financial year, has offered to buy back shares at a price up to ₹4,500 apiece, that’s 17% more than the closing price on Wednesday (Jan 12).
That’s not the entire reason for the cheer. Revenue grew a strong 4.5% in constant currency terms (adjusted for foreign exchange fluctuations). This would compare to Infosys’ 7% and Wipro’s 3% in the same period i.e. October to December 2021.
The fall in operating margin to 25%, due to rising cost of hiring and retaining talent, was disappointing but it is not a concern, analysts at Morgan Stanley reportedly said.
“TCS delivered strong growth numbers and the overall pipeline remains robust. We believe demand for core transformation remains strong, and this coupled with exemplary execution is likely to drive strong earnings,” said analysts at Edelweiss Research.
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SEE ALSO: TCS vs Infosys vs Wipro Q3 results – here’s how India’s three IT giants stack up against each other
TCS completes its fresher hiring target three months ahead of schedule but it’s not done yet
TCS will buy back shares worth ₹18,000 crore for a price up to ₹4,500 apiece
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