New Delhi: India’s largest software services firm Tata Consultancy Services (TCS) on Wednesday reported a 12.27 per cent rise in consolidated net profit for the third quarter (Q3) ended December 31, 2021.
The company had a net profit of Rs 8,701 crore in the same period last year.
In terms of quarter-on-quarter growth, TCS’ net profit jumped 1.5 per cent from Rs 9,624 crore posted in the previous quarter ended September 30, 2021.
The company’s board also approved a Rs 18,000 crore buyback plan for its shareholders at Rs 4,500 per share.
The offer price of Rs 4,500 per share is up about 16.6 per cent from today’s closing level of Rs 3,857.25 on BSE.
“It is proposed to undertake buyback from the shareholders of the company on proportionate basis under the tender offer route using stock exchange mechanism… The buyback is subject to the approval of the shareholders through a special resolution through postal ballot,” it added. .
According to the filing, the promoter companies held 72.19 per cent stake in TCS as of January 7, 2022.
The Mumbai-based firm’s revenue grew 16.3 per cent to Rs 48,885 crore in the quarter under review, as against Rs 42,015 crore in the same period last fiscal.
Rajesh Gopinathan, CEO and Managing Director, TCS, said: “Our continued growth momentum is a validation of our collaborative, insider approach to the business transformation needs of our clients. Clients are our engagement model, our end-to-end capability and our ability to deliver. are like. -Approach to problem solving.”
“While mapping their innovation and growth journey, we are also helping them execute new-age operating model changes to support those journeys,” he added.
The company has also declared a dividend of Rs 7 per share, the record date of which is January 20, 2022 and the payment date is February 07, 2022.
This added a total of 28,238 employees, taking the total workforce to 5,56,986 as of December 31, 2021.
Its IT services attrition rate (LTM) stood at 15.3 per cent in the third quarter.
TCS’s previous buyback offer of around Rs 16,000 crore was open on December 18, 2020 and closed on January 1, 2021. Under this offer, over 5.33 crore equity shares were bought back for Rs 3,000.
In 2018, TCS started a share buyback program of up to Rs 16,000 crore. The buyback included 7.61 crore shares at Rs 2,100 per equity share. In 2017 too, TCS had undertaken a similar share purchase programme.
Shares of the company closed at Rs 3,857, down 1.5 per cent on both BSE and NSE.
(with inputs from agencies)
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