India’s largest software services firm Tata Consultancy Services on October 7 reported 4.9% rise in consolidated net profit to ₹8,433 crore for the September 2020 quarter, and announced up to ₹16,000 buyback plan.
The net profit excluded ₹1,218 crore-provision towards legal claim. Including this number, the net profit was at ₹7,475 crore, TCS said in a regulatory filing.
TCS had registered a net profit of ₹8,042 crore in the September 2019 quarter.
Its revenue grew 3% year-on-year to ₹40,135 crore for the just-ended quarter from ₹38,977 crore in the year-ago period.
The filing said the Board has approved a buyback plan of up to ₹16,000 crore, priced at ₹3,000 per equity share.
This is 9% higher than the closing price of TCS shares on BSE on Wednesday. TCS shares closed at ₹2,737.4 apiece on Wednesday.
“The Board has approved a proposal to buy back up to 5,33,33,333 equity shares of TCS, being 1.42% of the total paid-up equity share capital, at ₹3,000 per equity share for an aggregate amount not exceeding ₹16,000 crore…,” it said.
The company has also announced an interim dividend of ₹12 per share.
“The strong order book, a very robust deal pipeline, and continued market share gains give us confidence for the future,” TCS CEO and Managing Director Rajesh Gopinathan said.