New Delhi:
India’s top IT services companies – Tata Consultancy Services (TCS), Infosys and Wipro – are set to release their respective third quarter figures on Tuesday. It is apparently the first time that the three companies have reported quarterly figures on the same day. IT companies are widely expected to post decent numbers after a year of acquisitions, deal winning and high digital transformation.
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In addition to the quarterly results, the board of India’s largest IT company TCS will also consider a buyback proposal today. At the end of the September 2021 quarter, TCS had cash and cash equivalents of Rs 51,950 crore.
TCS’s previous tender offer of approximately Rs 16,000 crore was opened on December 18, 2020 and closed on January 1, 2021. More than 5.33 crore shares were repurchased under the offer for Rs 3,000 each. In the past year, the share has increased by 25 percent.
Furthermore, the IT major has reported deals from new and existing customers in Jaguar Land Rover, State Bank of India, Cainz and others.
Infosys and Wipro have also set up buy-back programs to return excess cash on their books to shareholders.
In September last year, Infosys had said it has repurchased more than 5.58 crore of shares as part of its buyback offer of approximately Rs 9,200 crore. Wipro had also completed a buyback of Rs 9,500 crore in January last year.
Analysts at brokerage Anand Rathi have estimated quarter-over-quarter growth of TCS, Infosys and Wipro at 5.3 percent, 7 percent and 0.9 percent, respectively.
Wipro’s Q3 numbers are expected at 4pm today, followed by Infosys and TCS at 5pm.
The new leadership of Wipro has made several changes. Analysts will look forward to commenting on how the measures have progressed.
Talent management & offshoring, turnover and work from office trends are some of the other aspects that will be closely monitored.
Prior to the Q3 announcement, TCS was down 0.84 percent, Infosys was up 1.31 and Wipro was trading 0.88 percent lower in midday deals.