Tata Consultancy Services to consider a proposal for buyback of equity shares

At its meeting on October 11, the board of directors of Tata Consultancy Services (TCS) will discuss the proposal for the buyback of equity shares, the firm stated in a BSE filing on Friday.

TCS did not specify the amount of the potential buyback in the announcement. The most recent buyback by an IT giant was in 2020 and cost 160 billion rupees. 

“Pursuant to Regulation 29(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors will consider a proposal for buyback of equity shares of the Company, at its meeting to be held on October 11, 2023," TCS said in its BSE filing on Friday.

The buyback occurs at a time when Indian IT service providers are battling a demand climate that is unpredictable, particularly in the United States, a crucial market for the industry.

The IT major's profit increased by 16.8 per cent to ₹11,120 crore in Q1 FY24 against ₹9,519 crore it reported in the corresponding period last year. Despite an improved performance on an annual basis, TCS witnessed a sequential decline in its profit of 2.7 per cent from ₹11,436 crore in Q4 FY23.