TCS Q2 Results Today: Share buyback, 5 other monitorables for Dalal Street & trading strategy
Tata Consultancy Services (TCS) will announce its second-quarter earnings after market hours on Wednesday. While the performance scorecard will be closely watched, investor interest will be more in the share buyback program.
On October 6, the software major said that its board of directors will consider and approve a plan to buy back shares of the company.
Following the news, the stock hit an 18-month high of Rs 3,679 the next day.
Given that the global macroeconomic situation remains uncertain, posing risks to growth, the only silver lining for Dalal Street investors is the share buyback.
ETMarkets has, therefore, drawn down the key monitorables for investors in the September quarter results of TCS.
Share Buyback
If the board approves, then this will be the fifth time TCS will be conducting a share buyback program.
In January 2022, TCS had bought back shares worth Rs 18,000 crore through the tender offer route. Then the company had offered to buyback the shares at Rs 4,500 apiece.
This time also, analysts expect the company to announce a share buyback of a similar size.
Core Earnings
For the September quarter, which is traditionally strong for the sector, TCS is seen reporting a mere 1.4% sequential growth in consolidated revenue to Rs 60,218 crore, according to the average of estimates by eight brokerage firms.
But on a year-on-year (YoY) basis, the topline is seen rising nearly 9%.
Consolidated net profit is seen rising 3% sequentially and over 9% YoY to Rs 11,404 crore in the quarter, the estimates showed. Read full preview here
“We expect TCS to post a low single-digit growth in revenue sequentially as slowdown in the IT sector due to adverse macroeconomic conditions in the last two quarters persists.
