In conjunction with its Q2FY24 earnings, Tata Consultancy Services (TCS) disclosed its fifth share repurchase in the previous six years on Wednesday after market close.
In a buyback valued at Rs 17,000 crore, the Indian leader in information technology will repurchase up to 4.09 crore shares, or 1.12 per cent of the total equity share capital, at a price of Rs 4,150 per share. A second interim dividend of Rs 9 per share was also disclosed by TCS.
The corporation has repurchased shares five times in the last six years.
The corporation bought back shares in its last four repurchase programs for a total of Rs 66,000 crore. The series of buybacks started in February 2017 when TCS offered an 18 per cent premium over the going market price to purchase shares valued at Rs 16,000 crore.
Then, in June 2018 and October 2020, they carried out two more buybacks of Rs 16,000 crore each, offering premiums of 18 and 10 per cent, respectively. The last time the IT giant bought back shares from investors was in January 2022. Each share cost a premium of 17 per cent, for a total purchase price of Rs 18,000 crore.
TCS shares, which have increased by over 11 per cent so far in 2023, finished the day on the BSE 0.4 per cent lower at Rs 3,614.
Additionally, the business declared an interim dividend of Rs 9 per share.
TCS announced that its consolidated net profit increased by 9 per cent year over year (YoY) during the quarter to Rs 11,342 crore and that its consolidated revenue increased by over 8 per cent YoY to Rs 59,692 crore. Sequentially, there was only modest growth, as revenue increased by 0.5 per cent and profit by 2.4 per cent.