Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tata-consultancy-svcs-ltd" target="_blank" data-smartkarma-citation="entities:18708:1" rel="noopener">Tata Consultancy Svcs (TCS IN)</a> launched an INR170bn (US$2bn) Buyback in mid-November 2023 which is one of the largest Buybacks in India in recent years.</li>
<li>The company has published the Letter of Offer confirming the final details and the expected timeline for this Buyback.</li>
<li>Below is a closer look at these details and their implications for shareholders.</li>
</ul>



Tata Consultancy Svcs (TCS IN) launched an INR170bn (US$2bn) Buyback in mid-November 2023 which is one of the largest Buybacks in India in recent years.
The company has published the Letter of Offer confirming the final details and the expected timeline for this Buyback.
Below is a closer look at these details and their implications for shareholders.


Tata Consultancy Services Buyback: Tender Offer Period Opens on 1st Dec

<ul>
<li>Indian IT services giant <a href="https://www.smartkarma.com/entities/tata-consultancy-svcs-ltd" target="_blank" data-smartkarma-citation="entities:18708:1" rel="noopener">Tata Consultancy Svcs (TCS IN)</a> launched a US$2bn Buyback last week.</li>
<li>The company will buy up to 40,963,855 shares in a Tender Offer-style Buyback at a Buyback Price of INR4,150/share (an 18% premium to today's close).</li>
<li>In this insight, we take a closer look at the indicative timeline of key events in this Buyback, the company's Buybacks history, proration details, and what this means for investors.</li>
</ul>


Indian IT services giant Tata Consultancy Svcs (TCS IN) launched a US$2bn Buyback last week.
The company will buy up to 40,963,855 shares in a Tender Offer-style Buyback at a Buyback Price of INR4,150/share (an 18% premium to today's close).
In this insight, we take a closer look at the indicative timeline of key events in this Buyback, the company's Buybacks history, proration details, and what this means for investors.


Tata Consultancy Services (TCS IN): US$2bn Mega Buyback; Two More Trading Days Before Ex-Date

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>Tata Consultancy Services: The contrast between strong deal wins and growth deceleration indicates a slightly protracted recovery ahead for Tata Consultancy Services (TCS), as discretionary projects remain challenged</li><li>However, following two-quarters of flat sequential growth, we expect a sequential growth recovery from Q4FY24E, supported by a ramp-up of mega deals (a bigger boost to FY25E growth)</li><li>This is also reflected in deal market share gains by TCS (30% higher bookings than Accenture’s managed services in the last two quarters)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tata Consultancy Services: The contrast between strong deal wins and growth deceleration indicates a slightly protracted recovery ahead for Tata Consultancy Services (TCS), as discretionary projects remain challengedHowever, following two-quarters of flat sequential growth, we expect a sequential growth recovery from Q4FY24E, supported by a ramp-up of mega deals (a bigger boost to FY25E growth)This is also reflected in deal market share gains by TCS (30% higher bookings than Accenture’s managed services in the last two quarters)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily: Tata Consultancy Services

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>In Q2FY24, Tata Consultancy Services Ltd. (TCS) reported revenue of Rs 59,692 Cr, up only 0.5% on a QoQ basis (in rupee terms).</li><li>On a YoY basis, it posted weaker revenue growth of 8%, owing to weakness in discretionary spending.</li><li>The company reported operating profits of Rs 14,483 Cr and operating margins of 24.3%, reporting an expansion of 120bps QoQ. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In Q2FY24, Tata Consultancy Services Ltd. (TCS) reported revenue of Rs 59,692 Cr, up only 0.5% on a QoQ basis (in rupee terms).On a YoY basis, it posted weaker revenue growth of 8%, owing to weakness in discretionary spending.The company reported operating profits of Rs 14,483 Cr and operating margins of 24.3%, reporting an expansion of 120bps QoQ. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tata Consultancy Services  - Near-Term Challenges Persists

<ul><li>In Q4FY23, Tata Consultancy Services Ltd (TCS) reported revenue of Rs 59,381 Cr, up only 0.4% on a QoQ basis (in rupee terms).</li><li>While it posted better revenue growth of 12.6% on a YoY basis, it nonetheless was the lowest in the last 12 quarters.</li><li>The company reported operating profits of Rs 13,755 Cr with operating margins at 23.2% (a decline of 130 Bps).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In Q4FY23, Tata Consultancy Services Ltd (TCS) reported revenue of Rs 59,381 Cr, up only 0.4% on a QoQ basis (in rupee terms).While it posted better revenue growth of 12.6% on a YoY basis, it nonetheless was the lowest in the last 12 quarters.The company reported operating profits of Rs 13,755 Cr with operating margins at 23.2% (a decline of 130 Bps).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tata Consultancy Services Ltd (TCS) - Near-Term Challenges Persists

India

Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization that provides a comprehensive range of IT services to its clients in diverse industries. The Company, caters to finance and banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical, and utility industries.

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Tata Consultancy Svcs (TCS IN)

Tata Consultancy Services Buyback: Tender Offer Period Opens on 1st Dec

The Tender Offer Period closes on 7th December 2023. The Tender Offer Price is INR4,150/share. The current share price is around INR3,514. The...

Janaghan Jeyakumar, CFA

Tata Consultancy Services (TCS IN): US$2bn Mega Buyback; Two More Trading Days Before Ex-Date

The Record Date for Buyback Entitlement is Saturday 25th November 2023. if you want to participate in the Buyback, the last day to buy shares would...

Janaghan Jeyakumar, CFA

HSIE Results Daily: Tata Consultancy Services

The contrast between strong deal wins and growth deceleration indicates a slightly protracted recovery ahead for Tata Consultancy Services (TCS)

HDFC Securities

Tata Consultancy Services - Near-Term Challenges Persists

In Q2FY24, Tata Consultancy Services Ltd. (TCS) reported revenue of Rs 59,692 Cr, up only 0.5% on a QoQ basis (in rupee terms).

Axis Direct

Tata Consultancy Services Ltd (TCS) - Near-Term Challenges Persists

In Q4FY23, Tata Consultancy Services Ltd (TCS) reported revenue of Rs 59,381 Cr, up only 0.4% on a QoQ basis (in rupee terms).

Axis Direct

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