MUMBAI, July 15: TCS shares today fell nearly 4 per cent on profit-booking after the company’s June quarter earnings failed to enthuse investors even as the IT major reported a 9.9 per cent jump in net profit for the April-June period of the current fiscal.
The stock after a positive opening, lost 3.66 per cent to Rs 2,428.05 on BSE.
On NSE, it slipped 3.78 per cent to Rs 2,426.55.
“TCS posted results below expectations on the sales front, while the net profit growth came in higher than expected on the back of better expected EBIT and better than expected other income,” said Sarabjit Kour Nangra, VP Research IT of Angel Broking.
In its best performance in six quarters, TCS yesterday reported 9.9 per cent jump in net profit at Rs 6,317 crore for the April-June period, buoyed by multi-billion dollar deals in the European and North American markets.
In dollar terms, net income stood at USD 944 million for the quarter under the Indian Accounting standards, or Rs 32.06 per share. Consolidated gross revenue on constant currency terms jumped 14.2 per cent to Rs 29,305 crore or USD 4.36 billion, Chief Executive and Managing Director N Chandrasekaran had said.
The numbers, however, are not so robust on a sequential basis.
While net profit slipped 0.4 per cent due to forex volatilities and other externalities like 8-12 per cent salary hike impacting margins, revenue rose just 3.1 per cent. (PTI)
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