TCS buyback good news, supportive of the buyback announcement: Aberdeen AMC

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Published: February 17, 2017 10:46:52 AM

Stating that both TCS and Infosys have strong balancesheets, Aberdeen AMC on Friday said TCS buyback is good news and it is supportive of the buyback announcement.

 We are still as keen on the Indian market as we were before. Glory days of healthy returns from IT sector are over," it said. We are still as keen on the Indian market as we were before. Glory days of healthy returns from IT sector are over,” it said.

Stating that both TCS and Infosys have strong balancesheets, Aberdeen AMC on Friday said TCS buyback is good news and it is supportive of the buyback announcement. Talking about the Indian market to CNBC TV18 it said, “We are surprised by Indian market’s movement post US election in may ways. We are still as keen on the Indian market as we were before. Glory days of healthy returns from IT sector are over,” it said. Aberdeen also said that it admires the way Kotak Bank Ltd is being run. “It’s a well-managed company,” it said.

Tata Consultancy Services (TCS) on Thursday said that it will consider a share buyback in its next board meeting scheduled for February 20. “The Board of Directors will consider a proposal for buyback of equity shares of the company,” TCS said in a notice to stock exchanges. Earlier yesterday, N Chandrasekaran, the outgoing MD and CEO of India’s largest information technology services company had said in an interview to CNBC TV18 that the company had received suggestions from investors over the need for certainty on dividend policy along with share buyback to distribute its large cash pile to the shareholders. “These two comments have come from investors and we will discuss it in the board,” Chandra, as he is popularly known, said to CNBC TV18.

TCS had consistently been building up cash to meet the business requirements and for any possible acquisition. Earlier, Chandra had said that he would not want the company to fall short of cash in case any opportunity for an acquisition came along. Over the years, TCS has been increasing its dividend payments to shareholders, Chandra said to CNBC TV18.

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Chandra is the Chairman-designate of TCS’s parent group Tata Sons – India’s largest business group – and is due to take over on February 21. Earlier last month, Tata Consultancy Services said its net profit for the third quarter of the current financial year rose 10.9% on-year to Rs 67.78 billion, crossing $1 billion for the first time. Its revenue in the Oct-Dec quarter rose 8.7% on-year to Rs 297.35 billion. The results were in line with the broader market expectations.

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