TCS opportunity

43% it was

In Infosys, it was should be around 50-60%

i guess, you are telling the theoretical acceptance ratio…
i am asking you the entitlement ratio mentioned in the buyback letter…

for infosys, theoretical acceptance ratio is around 60% and entitlement ratio is around 29%…
final acceptance ration will get to know by mid december…

Thanks for the clarification.

Yes, the entitlement ratio was 43% as well.

thanks for the response…Please find below snap from Infy buyback offer…

From the above snapshot, does it mean that you can only render maximum 34 shares for the buyack? Can you sell the remaining shares (120-34 in above snap) in open market anytime?

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Just trying to revive this thread, since the same opportunity is available again.

I participated in the buyback last year and all my shares were accepted.

What are your thoughts on this year’s buyback?
How many of you are participating this time?

What is record date for buyback ?

Record date is yet to be announced.

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Q4 FY19:
Revenue up ( 38,010.00 vs 32,075.00) 18.50%
PAT up (8,152.00 vs 6,925.00) 17.72%
EPS down (20.85 vs 35.29)
Equity share capital up (375 Cr vs 191 Cr)

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TCS Q1 2021 Concall Highlights:

TCS Result in comparison with a Pre Covid H1 FY 20 (Apr-Sept 2019)

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Can TCS now considered a ER&D company in leagues of KPIT,LTTS,TATA ELXSI ?

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Source: DPS Mutual Fund

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Both of them have been consistent compounders in the past and still maintain leadership positions in their respective domains. However, It is also worthwhile to note that the business has entered the in the corporate lifecycle. This is evident from the slowly declining CAGR numbers year over year.

Edit: TCS CEO Mr. Krithivasan is also resonating the same during the results announcement. In a decade, the last quarter’s growth of 0.4% was the slowest.

Maintaining an aspirational margin of 26-28% with flat or zero growth is a paramount ask, and efficiency can’t be leveraged beyond a limit. I hope they expand their portfolio of services in the emerging digital space to address the flat growth in traditional areas.

Disc: Invested and biased

Some highlights from FY23 AR:

  1. Selected by Sainsbury’s, a leading supermarket retailer in UK, as its transformation partner to modernize its infrastructure landscape using TCS Enterprise Cloud™.
  2. Selected by AGL, Australia’s largest energy provider, as the partner for the Retail Next Program, which lays the foundation for their strategic business transformation into a multi-service retailer.
  3. Launched the TCS Quantum Computing Lab on AWS to help enterprises explore, develop, and test business solutions and accelerate the adoption of quantum computing, considered one of the most promising technologies of the decade. TCS will leverage the virtual research and development environment to design industry-leading solutions, build domain-centric performance benchmarks, and work with clients to co-create new use cases of quantum computing to tackle business challenges that defy the capabilities of conventional technologies.
  4. Enhanced its award-winning Quartz™ solution to enable central and commercial banks to support the entire lifecycle of Central Bank Digital Currency (CBDC) issuance, book-keeping and transactions.
  5. Partnered with BT Group, UK’s leading provider of fixed and mobile telecommunications, for its Digital Unit to boost its modernization plans. TCS will manage and ramp down over 70% of Digital’s legacy technology estate and boost its capacity to accelerate the build of its new strategic technology architecture, supporting the Group’s growth.
  6. Partnered with C&S Wholesale Grocers, Inc., to build a new cloud based operations platform to reduce the company’s carbon footprint and enhance the customer experience.
    Using AI and machine learning, C&S’s new operations platform will monitor traffic patterns
    and identify optimal distribution routes, thereby reducing food waste and achieving greater fuel efficiency.

Some of these partnerships are in emerging and futuristic technologies and do have a potential to trigger marginally higher revenue growth for few years.

BT Group has been struggling for quite some time, and if TCS can revamp their legacy applications and increase efficiency that could help turn around in BT Group future.

Disc : Invested.

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TCS may announce buyback:
Expectation Rs 18,000-20,000 crore.
Offer Price: Rs 4300-4500
CMP: Rs 3620.20.
52-week high: Rs 3634.25
5th BB in 6 years

History of BB by TCS:

January 2022 – Rs 18,000 crore buyback at Rs 4500 per equity share.
December 2020 – Rs 16,000 crore buyback at Rs 3000 per equity share.
September 2018 - Rs 16,000 crore buyback at Rs 2100 per equity share.
May 2017 - Rs 16,000 crore buyback at Rs 2850 per equity share.

2017,2018 and 2020 has 100% acceptance ratio for retail whereas Jan 2022 was 23%.

Source: TCS Buyback History: Tata Consultancy Services’ 5th share repurchase in 6 years – Check last offer size, price | Markets News, ET Now

Disc: Invested

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  • :chart_with_downwards_trend: TCS saw a net reduction of 6,333 employees in the second quarter of FY24, while in the previous quarter, they added 523 employees.
  • :briefcase: Chief Human Resources Officer Milind Lakkad credited TCS’s strategy of hiring and training freshers for the decline in headcount, highlighting increased productivity.
  • :chart: In the first quarter of FY24, TCS was the only major IT company to increase its headcount, while others experienced declines due to the uncertain economic climate.
  • :chart_with_downwards_trend: TCS’s headcount as of September 30, 2023, stood at 608,985 employees.
  • :arrows_counterclockwise: Attrition decreased to 14.9 percent on a last-twelve-month basis, down from the previous quarter’s 17.8 percent.
  • :chart_with_downwards_trend: Industry-wide, net additions and hiring have slowed, not limited to TCS.
  • :hourglass_flowing_sand: TCS faced delays in onboarding laterals for several months.
  • :moneybag: In the previous quarter, TCS provided salary hikes, offering 12-15 percent increases to exceptional performers and initiating a promotions cycle.
  • :bar_chart: TCS’s revenue in Q2 increased by 0.52% to Rs 59,692 crore, falling short of the Rs 60,641 crore analyst consensus.
  • :moneybag: EBIT grew by 5.02% to Rs 14,483 crore, with an EBIT margin of 24.26%.
  • :chart: Net profit rose by 2.42% to Rs 11,342 crore.
  • :currency_exchange: In constant currency terms, TCS saw a 2.8% year-on-year revenue increase to $7.21 billion in July-September.
  • :heavy_dollar_sign: TCS announced a share buyback worth Rs 17,000 crore at a 14.95% premium and an interim dividend of Rs 9 per share.
  • :books: The company’s order book stood at $11.2 billion with a book-to-bill ratio of 1.6.
  • :chart_with_upwards_trend: TCS reported a reduced attrition rate of 14.9% in July-September compared to 17% in the previous quarter.
  • :briefcase: CEO K Krithivasan highlighted strong momentum and a significant order book in Q2, the company’s second-highest TCV ever.
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