TCS board won't meet on January 9; Q3 results likely after SC hearing

Tata Consultancy Services (TCS) will not be the first one to kick-start the earnings season among information technology (IT) services firms in the third quarter (Q3) of 2019-20. The IT bellwether is learnt to be waiting until the Supreme Court (SC) hears its plea over the National Company Law Appellate Tribunal’s (NCLAT’s) order on the reinstatement of Cyrus Mistry. The SC will hear the petition filed by Tata Sons on January 10. The petition was mentioned before the Chief Justice on Monday after the court reopened following winter break.

Sources in the know said that TCS, which is scheduled to hold its board meet on January 9 for consideration and approval of Q3 results, will announce it at a later date.

“According to the listing obligations, a company will have to give at least seven calendar days of notice to exchanges for holding a board meet in case it is going to consider the company’s financial results. Since TCS is yet to inform exchanges on its board-meet timeline, it will not be able to hold it on January 9,” sources in the know said.

Under listing obligations, the time period of seven days will have to exclude the date of intimation and the date of meeting. The Mumbai-headquartered firm is yet to notify the exchanges on its next board meet. In comparison, its peer group companies — Infosys and Wipro — have already informed the bourses their next board-meet schedule.

However, corporate governance officials said that the January 9 schedule provided by the IT services firm in the beginning of the quarter is a tentative one. “These dates are always indicative and subject to change. So, technically, it can’t be said that TCS has deferred its board meet,” said the person.      

On January 4, TCS had filed an appeal in the SC against NCLAT that directed the reinstatement of Mistry as a director of the company. Earlier, Tata Sons had also moved the apex court against the order to the tribunal.

Mistry on Sunday said he would not seek executive chairmanship of the group holding company Tata Sons nor directorship of the three group companies, including TCS. He, however, sought a board seat at Tata Sons to protect the interests of minority shareholders.