On October 11, TCS will contemplate a share repurchase

 On October 11, TCS will contemplate a share repurchase

Over the last three years, the firm has paid dividends and repurchased shares totaling 99,514 crore to shareholders.

TCS's stock has outperformed the Nifty 50 by 11% year to date. (Bloomberg photo)

TCS's stock has outperformed the Nifty 50 by 11% year to date. (Bloomberg photo)

Mumbai: On Friday, Tata Consultancy Services Ltd. told the stock markets that its board will be debating a share buyback proposal on October 11 when the business releases its second-quarter results.

TCS, which has its headquarters in Mumbai, launched a $18,000 billion share buyback program last year, as part of which it repurchased 4 billion shares at a price of $4,500 apiece. TCS paid out dividends to shareholders totaling 42,079 crore (108.2%) of their free cash flow in FY23.

The hefty dividend and share repurchase schemes over the last three years have mostly benefited parent firm Tata Sons, which controls 72.3% of TCS. According to a Mint research, TCS has given shareholders 99,514 crore in dividends and share repurchases throughout this time. In FY23, TCS returned 92,066 crore to shareholders jointly with Infosys Ltd, HCL Technologies Ltd, Wipro Ltd, and Tech Mahindra Ltd.

Compared to the Nifty 50, which has returned 8% between 2 January and 6 October, TCS's stock has increased by 11% year to date. Even though the corporation is likely to see its weakest rate of growth since the global financial crisis of 2008, this year's share performance is better than predicted. Some brokerages, notably JPMorgan analysts, predict the current fiscal year will be a washout for India's IT industry and that this year's growth for the five largest companies would be in the single digits.

The management of TCS, headed by chief executive K Krithivasan, stated at the conclusion of the first quarter that a double-digit increase seemed challenging. TCS does not issue quarterly or yearly projections. TCS's stock rose 0.89% on Friday to settle at 3,621.40 per share on the NSE.

In Q1 FY24, the IT giant's earnings jumped 16.8% to 11,120 crore from 9,519 crore in the same quarter previous year. Although TCS's performance was better on a yearly basis, its earnings fell 2.7% sequentially from 11,436 crore in Q4 FY23.