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MarketScreener Homepage  >  Equities  >  NSE India Stock Exchange  >  Tata Consultancy Services    TCS   INE467B01029

TATA CONSULTANCY SERVICES

(TCS)
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India's TCS plans up to $2.2 billion buyback as legal costs hit profit

10/07/2020 | 10:46am EST
A private security guard stands at the exit gate of the headquarters of TCS in Mumbai

BENGALURU (Reuters) - Tata Consultancy Services said on Wednesday it would buy back shares worth up to 160 billion rupees ($2.18 billion), and reported a fall in quarterly profit as it set aside 12.18 billion rupees to cover legal fees related to a U.S. lawsuit.

The company also named Samir Seksaria as its chief financial officer, choosing the over two-decade veteran of India's top software exporter to replace V. Ramakrishnan who will retire in April next year.

TCS said it would buy back up to 53.3 million shares at 3,000 rupees per share, a 9.7% premium to its stock's closing price on Wednesday.

"The timing of the buyback has been partly triggered due to the ongoing feud between Tata and the Mistry group (Shapoorji Pallonji group), with the Mistry group looking to exit its Tata Sons holdings," said Jyoti Roy, an analyst at Angel Broking.

The Shapoorji Pallonji group, which has an 18% stake in TCS parent Tata Sons, recently said "a separation from the Tata Group is necessary".

A surge in TCS shares on Monday after it disclosed it would consider a buyback helped its market value cross 10 trillion rupees, making it the second Indian firm to achieve the milestone after Mukesh Ambani's Reliance Industries.

Smaller rival Wipro Ltd has also said its board would consider a share buyback at a scheduled meeting on Oct. 13.

Revenue at TCS' banking, financial services and insurance unit rose 4.6% to 161.38 billion rupees in the three months ended September. Total revenue rose 3% to 401.35 billion rupees.

Consolidated net profit fell to 74.75 billion rupees, from 80.42 billion rupees a year earlier, missing analysts' estimates of 78.05 billion rupees, according to Refinitiv data.

($1 = 73.2437 Indian rupees)

(Reporting by Philip George in Bengaluru; Editing by Arun Koyyur and Aditya Soni)

By Philip George


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
RELIANCE INDUSTRIES LTD -1.17% 1929.8 Delayed Quote.30.19%
TATA CONSULTANCY SERVICES -1.51% 2679.65 Delayed Quote.25.85%
WIPRO LIMITED 1.44% 355.05 End-of-day quote.44.36%
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Financials
Sales 2021 1 615 B 21 848 M 21 848 M
Net income 2021 319 B 4 318 M 4 318 M
Net cash 2021 269 B 3 643 M 3 643 M
P/E ratio 2021 31,4x
Yield 2021 1,95%
Capitalization 10 055 B 136 B 136 B
EV / Sales 2021 6,06x
EV / Sales 2022 5,35x
Nbr of Employees 448 464
Free-Float 27,9%
Chart TATA CONSULTANCY SERVICES
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Tata Consultancy Services Technical Analysis Chart | TCS | INE467B01029 | MarketScreener
Technical analysis trends TATA CONSULTANCY SERVICES
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 34
Average target price 2 882,91 INR
Last Close Price 2 679,65 INR
Spread / Highest target 49,3%
Spread / Average Target 7,59%
Spread / Lowest Target -45,5%
EPS Revisions
Managers
NameTitle
Rajesh Gopinathan CEO, MD & Non-Independent Executive Director
Natarajan Chandrasekaran Non-Executive Chairman
N. Ganapathy Subramaniam COO & Non-Independent Executive Director
V. Ramakrishnan Chief Financial Officer
K. Ananth Krishnan Chief Technology Officer
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