TCS Bags Over Rs 2,900-Crore Order From BSNL For 4G Expansion

IT major Tata Consultancy Services Ltd. has received an add-on advance purchase order worth Rs 2,903.22 crore from Bharat Sanchar Nigam Ltd. for the end-to-end planning, execution and annual maintenance of a 4G mobile network across 18,685 sites, as per an exchange filing on Wednesday.

Detailed purchase orders will be issued by BSNL in due course, subject to the fulfilment of certain conditions and documentation as mentioned in the APO, added the filing.

The company had recently cut variable pay of its senior employees for the third consecutive quarter, as per people aware of the matter. The development comes as the IT industry at large has been delaying issuing variable payouts amid no significant margin growth. Variable pay is a performance-linked incentive, paid out on a quarterly basis, depending on the employee and organisation's performance in the specific quarter.

The scrip rose as much as 1.11% to Rs 3,537 apiece. It pared gains to trade 0.82% higher at Rs 3,527 apiece, as of 11:51 a.m. This compares to a 0.59% advance in the NSE Nifty 50.

It has fallen 15.48% on a year-to-date basis, and 7.67% in the last 12 months. The relative strength index was at 54.05.

Out of 50 analysts tracking the company, 37 maintain a 'buy' rating, 10 recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 7.2%.