Tata Consultancy Services (TCS) has announced that its board of directors will consider a proposal on share buyback at its meeting on October 11, 2023.
The IT giant is scheduled to report its September quarter results on the same day.
TCS had previously announced a share buyback of up to 4,00,00,000 shares in 2022, amounting to ₹18,000 crore. This was 1.08% of the total paid-up equity share capital of the company.
In addition, TCS had carried out a ₹16,000-crore share buyback in 2022, ₹16,000 crore buyback in 2018 and ₹16,000 crore share buyback in 2017.
Analysts largely expect TCS to report a YoY jump in profit of around 9-11% on a double-digit rise in sales. Margins are seen expanding sequentially following the wage hikes in the June quarter.
What is Share Buyback?
Share buybacks are a way for companies to return wealth to their shareholders. By buying back shares, companies reduce the number of shares outstanding in the market, which increases the ownership stake of existing shareholders. This can lead to an increase in share price.
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