Hailing TCS buyback news, TV Mohandas Pai on Thursday said that it is a great move by TCS. He further said, " TCS has been a market leader and paying heed to the stakeholders."
Hailing TCS buyback news, TV Mohandas Pai on Thursday said that it is a great move by TCS. In an interview with BTVi he said, ” TCS has been a market leader and paying heed to the stakeholders.” “TCS’ buyback will help the company and the stock price. TCS has demonstrated that its leadership is not weak,” he further said. Talking about Infosys, Pai said, “I hope that Infosys follows suit and announces share buyback.” “If Cognizant and TCS can buyback shares, why not Infosys?” he added.
TCS on Thursday said that its board would consider buyback of equity shares at a meeting to be held on February 20, 2017. 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.
Sanjay Dutt, head of the brokerage firm Quantum Securities, said that he did not think that the proposed buyback was negative or a sign of saturation in growth.
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.
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.