TCS plans to bring in a net profit of Rs 8,433 crore, repurchase shares worth Rs 16,000 crore in the September quarter. The consolidated net profit of Tata Consultancy Services (TCS), the country’s largest software services company, grew by 4.9 percent to Rs 8,433 crore in the second quarter of the current financial year.
The company has also announced a Rs 16,000-crore plan to repurchase shares. 1,218 crore has not been included as a provision of legal claim in net profit. TCS has given this information to the stock markets.
The company had a net profit of Rs 8,042 crore in the September quarter of last year. During the June-September quarter of this year, TCS’s revenue grew by 3 percent year-on-year to Rs 40,135 crore. The figure stood at Rs 38,977 crore last year.
TCS has informed the stock exchanges that the board of the company has given its approval to the repurchase scheme of shares worth Rs 16,000 crore. The company’s board plans to buy back at a rate of Rs 3,000 per share.
This is nine percent higher than the share price of TCS at the close of trading on the BSE on Wednesday. At the end of trading on Wednesday, TCS shares were priced at Rs 2,737.4.
The company said that the board has approved the proposal to repurchase 5,33,33,333 equity shares of TCS at the rate of Rs 3,000 per equity share. This is equal to 1.42 percent of the company’s total paid-up equity share capital.
The company will repurchase shares worth a total of Rs 16,000 crore. The company has also announced an interim dividend at the rate of 12 per share.
Interest subsidy on MSME loan extended till March 2021
Interest subsidy at the rate of two percent on loans given to micro, small and medium enterprises (MSME) by cooperative banks has been extended till 31 March 2021.
The Reserve Bank of India gave this information on Wednesday. Apart from this, the terms of the scheme have also been changed. The government announced the interest assistance scheme for MSME in November 2018.
Under this, interest subsidy on MSME loans was announced to scheduled commercial banks during the two financial years 2018-19 and 2019-20. This scheme has also been extended for the financial year 2020-21.
Cooperative banks have also been included in the eligible lending institutions under the scheme from 3 March 2020. The scope of the plan has been limited to term loans and working capital up to Rs 1 crore. Under the scheme, eligible MSMEs are given an interest relief of two percent on their debt on an annual basis.
The Reserve Bank has said in a notification issued in this regard that the government has revamped some guidelines related to the operationalization of the scheme. The validity of the scheme has been extended till 31 March 2021.