Rs 16,000-cr TCS buyback plan announced; Q2 net profit up 4.9 pct at Rs 8,433 cr

India's largest software services firm Tata Consultancy Services (TCS) on Wednesday reported 4.9 per cent rise in consolidated net profit to Rs 8,433 crore for the September 2020 quarter, and also announced up to Rs 16,000 buyback plan.

The net profit excluded Rs 1,218 crore-provision towards legal claim. Including this number, the net profit was at Rs 7,475 crore, TCS said in a regulatory filing.

TCS had registered a net profit of Rs 8,042 crore in the September 2019 quarter.

Its revenue grew 3 per cent year-on-year to Rs 40,135 crore for the just-ended quarter from Rs 38,977 crore in the year-ago period.

The filing said the Board has approved a buyback plan of up to Rs 16,000 crore, priced at Rs 3,000 per equity share.

This is 9 per cent higher than the closing price of TCS shares on BSE on Wednesday. TCS shares closed at Rs 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 per cent of the total paid-up equity share capital, at Rs 3,000 per equity share for an aggregate amount not exceeding Rs 16,000 crore...," it said.

The company has also announced an interim dividend of Rs 12 per share.

See Zee Business Live TV Streaming Below:

"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.