Tag: buyback

07
Oct
2020
Posted in technology

IT Giant TCS Surges to Record After Unveiling $2 Billion Buyback

(Bloomberg) —

Tata Consultancy Services Ltd. surged to a record high after the Indian giant announced a share buyback of as much as 160 billion rupees ($2.2 billion) and said technology spending was recovering faster than anticipated.

Asia’s largest software outsourcing provider reported a larger-than-expected 7% fall in net income to 74.7 billion rupees in the September quarter. But Chief Executive Officer Rajesh Gopinathan said IT budgets were bouncing back and growth should accelerate as clients spend on digital services such as cloud migration, security and work tools to trim costs and adjust to a post-pandemic environment.



a man wearing a suit and tie: Tata Consultancy Services CEO Rajesh Gopinathan Presents First Earnings Since Mistry Court Ruling


© Bloomberg
Tata Consultancy Services CEO Rajesh Gopinathan Presents First Earnings Since Mistry Court Ruling

Like Infosys Ltd. and Wipro Ltd., TCS is struggling to serve global financial services giants and corporate clients after a nationwide lockdown forced hundreds of thousands of their employees to work from home. But spending is loosening as lockdowns ease globally and their customers build out their digital infrastructure. TCS’s shares gained as much as 5.2% Thursday, becoming the best performer on the benchmark Sensex, after brokerages including Dalal & Broacha and IDBI Capital raised their recommendations on the stock.

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“The recovery is happening a quarter earlier than we expected, it is sustainable and has strong legs,” Gopinathan said during a post-earnings briefing. “But we are not fully out of the woods and need to be careful on the economic and health fronts.”

TCS Earnings Signal More Upside for India’s IT Names: Analysts

What Bloomberg Intelligence Says

Tata Consultancy Services is poised to see growth recover over the next 2-3 quarters as discretionary IT spending rebounds, especially among banking clients. A boost in spending on digital transformations and a need to save more on their total IT costs will be the main drivers. Tata’s unique culture,

05
Oct
2020
Posted in technology

Sensex, Nifty end higher on TCS buyback plans, banking gains

BENGALURU (Reuters) – Indian shares ended higher on Monday as Tata Consultancy Services’ market capitalisation touched 10 trillion rupees ($136.46 billion) on share buyback plans and banking stocks gained after the government said it would waive interest levies on some loans under moratorium.

The Nifty ended 0.76% higher at 11,503.35 and the Sensex gained 0.71% to close at 38,973.70.

IT heavyweight TCS said it would consider a share buyback later in the week when it reports results, sending its shares up as much as 8.1% to a record high of 2,728.1 rupees.

The Nifty IT index rose 3.47%. Shares in TCS, Wipro Ltd and Infosys Ltd were among the top percentage gainers on the blue-chip Nifty 50.

The Indian government had told the country’s top court it would waive the compounding interest component on loans up to 20 million rupees under a COVID-19 support plan, a legal filing showed.

The Supreme court will have its next hearing on the interest waiver case on October 13.

The NSE Bank index ended 0.56% higher, with shares of IndusInd Bank rising as much as 6.5% and Canara Bank Ltd shares closing 0.6% higher.

($1 = 73.2800 rupees)

(Reporting by Philip George in Bengaluru; Editing by Ramakrishnan M.)

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