Moneycontrol
Feb 16, 2017 09:41 PM IST | Source: CNBC-TV18

After TCS, Infosys says buyback to happen at 'appropriate time'

Speaking to CNBC-TV18, UB Pravin Rao, Chief Operating Officer at Infosys, said all options were being explored and that the company's board would decide on the timeline of the buyback and the cap allocation policy.

Hours after Tata Consultancy Services announced that it would consider a share buyback, fellow IT bellwether Infosys said it would not be averse to doing the same.

Speaking to CNBC-TV18, UB Pravin Rao, Chief Operating Officer at Infosys, said all options were being explored and that the company's board would decide on the timeline of the buyback and the capital allocation policy, adding that a share buyback would happen at an "appropriate time".

While Cognizant recently announced a USD 3.4 billion buyback plan, Infosys is being pressured by two of its ex-CFOs to consider a share buyback.

Experts believe that share buyback could emerge as a trend in the sector amid rising concerns that IT companies are struggling to put excess cash to investment use in a growth-challenged environment.

Rao insisted that there had been no cutbacks in discretionary spending and that overall demand remained decent with a good degree of optimism at the macro level.

Admitting that the sector is undergoing a sea change, Rao said it was difficult to say whether 2017 will be a better year than 2016.

Transcript to follow.
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