Shares of Tata Consultancy Services (TCS) on Wednesday fell by over 1 per cent after the company’s June quarter earnings failed to meet market expectations.

 The scrip declined 1.11 per cent to close at Rs 2,107.70 on the BSE. During the day, it fell by 2.87 per cent to Rs 2,070.10.  On the National Stock Exchange (NSE), shares dipped 1.31 per cent to close at Rs 2,105.30 apiece.  In terms of traded volume, 2.65 lakh shares were traded on the BSE and over 63 lakh shares on the NSE during the day.

 “TCS’ first quarter performance was a tad weaker than our/street estimates,” according to a report by Emkay Global Financial Services.  The country’s largest software services firm on Tuesday reported a 10.8 per cent growth in consolidated net profit to Rs 8,131 crore for the quarter ended June 30.

Read more:TCS Q1 net up 10.8% on strong growth in digital, BFSI business

 It had posted a net profit of Rs 7,340 crore in the year-ago period, the company said in a BSE filing.  Revenue of the Mumbai-based firm grew 11.4 per cent to Rs 38,172 crore in the June 2019 quarter, compared to Rs 34,261 crore in the same quarter of 2018-19, it added.

 “TCS’ Q1 FY20 result was a tad below estimates on both revenue growth and margins. The topline miss was largely a consequent of incremental weakness in the BFSI (banking, financial sector and insurance) vertical (31 per cent of revenues) while margins were once again affected by the continued increase in the fulfilment costs,” according to a report by JM Financial Institutional Securities.

 The board has recommended a dividend of Rs 5 per equity share for the June 2019 quarter.

 

 

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