India's TCS announces up to $2.2 billion buyback, second quarter profit falls

FILE PHOTO: A shareholder arrives for the Tata Consultancy Services (TCS) annual general meeting in Mumbai June 28, 2013. REUTERS/Vivek Prakash

BENGALURU (Reuters) – India’s top software exporter Tata Consultancy Services TCS.NS said on Wednesday it would buy back shares worth up to 160 billion rupees ($2.18 billion), and reported a 7.1% fall in quarterly profit.

The buyback comes at a time when TCS parent Tata Sons is engaged in a fight with one of its oldest shareholders, the Shapoorji Pallonji Group, which recently said “a separation from the Tata Group is necessary”.

Consolidated net profit for the quarter fell to 74.75 billion rupees from 80.42 billion rupees a year earlier, as the company set aside 12.18 billion rupees under exceptional items related to a U.S. lawsuit.

Analysts on average had expected a profit of 78.05 billion rupees, according to Refinitiv data.

“The timing of the buyback has been partly triggered due to the ongoing feud between Tata and the Mistry group, with the Mistry group looking to exit its Tata Sons holdings,” said Jyoti Roy, an analyst at Angel Broking.

TCS said its consolidated revenue for the period rose 3% to 401.35 billion rupees.

($1 = 73.2437 Indian rupees)

Source: Read Full Article