TCS shares hit 52-week high on share buyback proposal

Shares of IT major Tata Consultancy Services were in focus on Monday after the company announced its plans for the buyback of its equity shares on October 11. During the session on Monday, shares of the company surged as much as 1.65% to hit a 52-week high of ₹3,680.

On Monday, the share price of the company opened higher at ₹3,654,  up 0.93%, as against the closing price of the previous session at ₹3,620.20. At 12:37 pm, the share price of the company was trading 1.06% higher at ₹3,658. In contrast to this, the broader BSE Sensex was trading 0.55% or 361.59 points lower at 65,691.53. At present, the share price of the company is trading 21.4% higher than the 52-week low, which the company touched on October 10 last year. During the session on Monday, the market capitalisation of the company stood at more than ₹13.38 lakh crore, with 88,659 shares exchanging hands as against the two-week average of 1.55 lakh shares. In the last month, three month and one year, the company has given 6.32%, 10.08% and 19.45%, respectively, in returns. 

"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,” the company says in a statement.

Notably, in the April to June quarter of FY24, the company’s consolidated net profit stood at ₹11,074 crore as against ₹9,478 crore in the same period last year. Sequentially, the consolidated profit dropped by 2.8% from ₹11,392 crore in the March 2023 quarter.

The revenue from operations rose 12.6% to ₹59,381 crore from ₹52,758 crore in the corresponding quarter last fiscal. On quarter-on-quarter (QoQ), the revenue fell marginally by 0.37% from ₹59,162 crore in Q4FY23.

In dollar terms, the revenue climbed 4% to $7,226 million as against the previous quarter. The board of the IT major declared the first interim dividend of ₹9 per equity share of ₹1 each for FY24 on July 20, which was paid to the equity shareholders of the company on August 7, 2023.

Notably, the company is investing in building capabilities at scale on new technologies, and in research and innovation. "We are proactively building differentiating capabilities in generative AI and actively working on such projects with our clients, delivering impact on technology, operations and client experience dimensions," said N Ganapathy Subramaniam, chief operating officer and executive director, TCS.