New Delhi: Amid calls in the IT industry for sharing of cash pile with shareholders and investors, India’s largest software company Tata Consultancy Services Wednesday said its board will discuss suggestions received on certainty over dividend policy and share buyback.
According to a report in Moneycontrol, TCS board is likely to consider buyback of shares on 20 February.
Stating that the company had received suggestions from investors over the need for certainty on dividend policy along with share buyback to distribute the cash, outgoing TCS chief N Chandrasekaran said: “These two comments have come from investors and we will discuss it in the board.”
Without giving any further details on the issue in an interview with CNBC TV18, he said TCS has been building up cash to meet its requirements, especially in the case of any mergers and acquisitions, and the excess sum has been shared consistently with shareholders.
Chandrasekaran said that over the years, TCS has been increasing its dividend payments to shareholders.
Asked who would take over as the company’s new CFO as the incumbent Rajesh Gopinathan will replace him as CEO, Chandrasekaran said: “We have an internal candidate, we will announce that candidate. We have to go through the board. So, in the next board meeting, that will get formalised.”
On the issue of impact on Indian IT industry in the wake of proposed tightening of H-1B visas norms and hike in fees by the US, Chandrasekaran said that for TCS, it will not be a big issue.
TCS has worked in an environment where visas were difficult to get. “USD 1,00,000 minimum wage in the US will not be a problem,” he pointed out.
Allaying fears in the IT industry about a slowdown, he said the industry was robust and the demand environment was strong.
In meetings with various clients from across industries, he said he did not come away with any concern.
“I am not in the doom and gloom club,” Chandrasekaran said.
On the way ahead for TCS, he said Gopinathan and his team understand the industry and the company does not need any major management or strategic changes because of his elevation to Tata Sons.
The way TCS operates will not change, he clarified, adding however that the company will shift to a higher gear on cloud and automation.
“We already operate in cloud space. We have a clear view on what we want to do in the cloud space. We have done a lot of work in automation, we want to see how we can take it to the next level,” Chandrasekaran added.