India’s TCS to consider share buyback next week

BENGALURU (Reuters) -India’s Tata Consultancy Services on Friday said it will consider a share buyback when its board meets next Wednesday to approve second-quarter financial results.

TCS, India’s largest information technology (IT) services firm, did not disclose the quantum of the buyback it was considering.

It had last bought back shares worth 160 billion rupees ($1.92 billion) in 2020.

The buyback comes at a time Indian IT services companies are grappling with an uncertain demand environment, especially in the U.S., a key market for the sector.

Investors are likely to parse results and commentary of IT firms for signs of recovery in deal signings in fiscal 2025 following a “washout” year, J.P.Morgan analysts said on Wednesday.

Shares of TCS, which ended up 0.9% on Friday, are up 13.5% so far this year against 8.5% gains in the benchmark Nifty 50 index and 13% in the IT sector.

($1 = 83.1740 Indian rupees)

(Reporting by Chris Thomas in Bengaluru; Editing by Savio D’Souza and Varun H K)