Shares of TCS today plummeted by 5.6 per cent despite the company posting a stellar 50.3 per cent jump in December quarter net profit.
The country’s largest IT exporter’s scrip tanked 5.53 per cent to Rs 2,221.25 on the BSE. On the NSE, the stock slumped 5.59 per cent to Rs 2,218.70. It was the worst performer among the blue-chips on both Sensex and Nifty.
“TCS reported its Q3 FY14 results with revenues as operating margin coming in a bit lower-than-expectations, while net profit stood higher than estimates on account of healthy forex gains,” said Ankita Somani, Research Analyst-IT, Angel Broking.
“TCS’s December quarter performance was tad lower than estimates,” said Manik Taneja, Research Analyst, Emkay Global Financial Services.
TCS had yesterday posted a 50.3 per cent jump in December quarter net profit at Rs 5,333 crore, aided by all-round business growth and a one-time forex gain, and sounded confident of a stronger performance next fiscal.
It had reported a consolidated net profit of Rs 3,550 crore in the third quarter a year ago.
TCS logged a 32.5 per cent rise in October-December quarter revenue at Rs 21,294 crore on the back of good traction in life sciences and manufacturing sectors, among others, even as improved business in Europe boosted growth.
In US dollar terms, TCS net profit rose 31.7 per cent to $858 million during the quarter under review against USD 652 million in the same period of previous fiscal.
Revenues were up 17 per cent to $3.44 billion against $2.95 billion during the same period a year ago. Sequentially in dollar terms, the net profit rose 14.7 per cent, while revenues were up by 3 per cent.