TCS Q2 Result: Net Profit Rises 8 Per Cent To Rs 11,342 Crore; Buyback Worth Rs 17,000 Crore Announced
TCS' consolidated revenue for the quarter came in at Rs 59,692 crore
Tata Consultancy Services (TCS), India's largest software company, on Wednesday said its net profit increased 8.7 per cent year-on-year to Rs 11,342 crore in the September 2023 quarter, driven by a strong order book, especially in the BFSI segment, despite a tough business environment.
The Tata Group flagship had reported a net profit of Rs 10,431 crore in the year-ago period. Its revenue from operations rose 7.9 per cent year-on-year (YoY) to Rs 59,692 crore in the reporting quarter from Rs 55,309 crore a year ago, the company said. The company's operating profit during the reporting quarter grew 9.1 per cent to Rs 14,483 crore while operating margins widened by 25 bps to 24.3 per cent.
TCS' consolidated revenue for the quarter came in at Rs 59,692 crore. The company's order wins for Q2 stood at $11.2 billion, which was higher quarter-on-quarter (QoQ). Its EBIT margin for the quarter increased to 24.3 per cent compared to 23.2 percent (QoQ). The dollar revenue for the IT major stood at $7,210 million.
The company also announced an interim dividend of Rs 9 per share.
TCS has also announced a share buyback for Rs 17,000 crore at a price of Rs 4,150 a share on October 11. The buyback price is at a premium of about 15 per cent to the prevailing price.
The company will be buying up to 4,09,63,855 shares representing 1.12 percent of the total equity. The buyback size does not include transaction costs, applicable taxes and other incidental and related expenses. This is the fifth share buyback by India's largest information technology services company in the last six years. The company bought Rs 66,000 crore worth of shares in four such exercises.
TCS bought back its shares for the first time in February 2017. It bought shares worth Rs 16,000 crore at an 18 per cent premium to the prevailing price. This was followed by two buybacks of Rs 16,000-crore each in June 2018 and October 2020, at an 18 per cent and 10 per cent premium, respectively.
The stock closed 0.52 per cent down at Rs 3,610.20 on the BSE on Wednesday, ahead of the company’s earnings release.
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