To pay ₹2,250 crore for expanding delivery center
The country’s largest IT services firm, Tata Consultancy Services Ltd (TCS) has signed an agreement to acquire 100 per cent equity shares of Darshita Southern India Happy Homes Private Limited for ₹2,250 crore. The acquisition is aimed at securing land and a commercial building to serve as a new delivery center for the IT services giant.
Darshita Southern India Happy Homes, incorporated in September 2004, is engaged in developing commercial real estate. Since the property is still under development, the entity has not generated revenue in the past three years. The acquisition will be executed through a cash transaction, with TCS holding a call option to complete the deal after two years.
For the third quarter, TCS reported a revenue of ₹63,973 crore, which is a decline of 0.4 per cent in comparison to the September quarter. A CNBC-TV18 poll had projected the revenue in rupee terms to grow by 0.2 per cent to ₹64,333 crore.
In US Dollar terms, TCS reported a revenue of $7,539 million, which is marginally below the CNBC-TV18 poll of $7,626 million. On a sequential basis, TCS’s US dollar revenue fell 1.7 per cent while a CNBC-TV18 poll had projected a 0.6 per cent drop.
In constant currency terms, TCS’s growth was flat on a sequential basis, which is lower than the June quarter as well as the same quarter of last year due to furloughs and a lower contribution from the BSNL deal. A CNBC-TV18 poll had projected the growth in constant currency terms to be 0.2 per cent.