Moneycontrol
Apr 18, 2017 10:07 AM IST | Source: Moneycontrol.com

TCS up 1% on shareholder nod for buyback; ahead of earnings

The buyback programme has approved by shareholders of the company through a special resolution.

TCS up 1% on shareholder nod for buyback; ahead of earnings

Moneycontrol News

Share price of Tata Consultancy Services (TCS) gained nearly 1 percent intraday Tuesday on the back of shareholders’ approval for buyback.

The buyback programme has approved by shareholders of the company through a special resolution.

The proposed shares under the buyback represent 2.85 percent of the total paid up equity share capital at Rs 2850 per equity share.

In February, the company board had approved the proposal to buy back up to 5.61 crore equity shares for an aggregate amount not exceeding Rs 16,000 crore.

The company is going to announce its Q4 earnings today. According to average of estimates of analysts polled by CNBC-TV18, TCS is expected to report a 2 percent degrowth sequentially in profit at Rs 6,638 crore while revenue may increase 0.4 percent to Rs 29,864 crore in the quarter ended March 2017.

Revenue in dollar terms is likely to rise 2.1 percent quarter-on-quarter to USD 4479.5 million in Q4, supported by cross currency and continued recovery in BFSI & retail segments.

The Tata Group firm has the highest exposure to BFSI (banking, financial services and insurance) at over 40 percent.

EBIT (earnings before interest and tax) is expected to increase 0.45 percent to Rs 7,768 crore but margin is likely to be flat at 26 percent compared with previous quarter.

At 09:29 hrs Tata Consultancy Services was quoting at Rs 2,323.05, up Rs 2.20, or 0.09 percent on the BSE.

Posted by Rakesh Patil
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