India’s largest software exporter, Tata Consultancy Services, announced a $ 2.4 billion share buyback on Wednesday.
The IT giant’s net income rose more than 12 percent to Rs. 9,769 crore for the three months ended December 31, above analyst expectations compared to the same period last year.
Strong demand across all businesses resulted in third-quarter revenue growth reaching its highest level in five years, rising more than 16 percent year-over-year to Rs. 48,885 crore said the company is headquartered in Mumbai.
“We had an exceptional quarter,” said Rajesh Gopinathan, CEO and Managing Director, in a media briefing after the results were announced.
“We are now at $ 25 billion in sales in calendar year ’21. Most importantly, that growth has been accompanied by continued industry-leading profitability.”
The country’s second largest company by market size announced it would buy back shares valued at Rs 180 billion for Rs. 4,500 per share.
That equates to a premium of 16.67 percent on the closing price of Rs stock on Wednesday. 3,857.
The operating margin decreased slightly to 25 percent, compared to 25.6 percent in the previous quarter, influenced by an increased focus on hiring and retaining talent.
TCS said it hired 28,823 new employees in the quarter, despite employee turnover – a key metric for IT companies – up from 11.9 percent in the previous quarter to 15.3 percent.
TCS was at the forefront of an IT boom that turned India into a back office to the world as companies in North America and Europe subcontract and benefit from a skilled English-speaking workforce.
The company generates more than 80 percent of its sales in its western markets outside of India.
TCS overseas growth was led by North America, which contributes half of its total business and saw revenue grow 18 percent year over year.
Revenue in Europe, Great Britain and Latin America increased by 17.5, 12.7 and 21.1 percent, respectively, compared to the same quarter of the previous year.
TCS won $ 7.6 billion in new contracts in the quarter, up 12 percent from $ 6.8 billion in contracts signed the previous quarter.
The board also approved an interim dividend of Rs. 7 per share for shareholders.
TCS shares closed 1.5 percent lower in Mumbai ahead of results.
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