IT weekly wrap: TCS buyback, exits at Infy steal the limelight

The week began a little slow but ended with Tata Consultancy Services announcing a massive buyback for the second consecutive year.

Earlier in the week, Infosys’ head of manufacturing Nitesh Banga quit the IT services firm to join product software company GlobalLogic. Another senior executive, Sangita Singh, who was heading the healthcare and life sciences vertical also put in her papers after a two-and-a-half year stint at the IT major. Also read: Top Infosys executive Nitesh Banga quits, joins GlobalLogic

Meanwhile, a labour union has accused Tech Mahindra of unfairly terminating some employees, a claim that the IT company declined. Read: Labour union accuses Tech Mahindra of layoffs, unfair termination

Even as the IT industry continues to grapple with slowing growth and increasing protectionism in its largest markets, experts have pointed out that mass layoffs are unlikely to happen this year. “The companies have invested a lot in reskilling their employee base,” an industry analyst who did not want to be named told Moneycontrol.

TCS held its annual general meeting on Friday, where Tata Sons chairman N Chandrasekaran said TCS’s digital strategy was working well for the company and will continue to drive growth and large projects. The board also approved a buyback of up to Rs 16,000 crore just before its annual general meeting, sending the company’s shares up nearly three percent.

Also read: TCS announces a share buyback of up to Rs 16,000 crore

Analysts said the buyback was largely on expected lines and that the buyback will not have any material impact on earnings. However, they were positively surprised with the buyback price of Rs 2,100 per share.