Shares of TCS fell by nearly 3% today after the company reported a 5.9% decline in consolidated net profit for the April-June quarter. After a weak opening, the stock of the top IT exporter further lost 2.78% to Rs 2,376.10 on the BSE. On the NSE, it dropped 2.91% to Rs 2,375. However, IT stocks were under pressure ahead of the earnings from Wednesday. The benchmark index, Nifty IT lost nearly 70 points, trading lower at 10,367.25 points.
The shares of other tech components of Nifty IT, Oracle Financial Services Software, Tech Mahindra, Wipro, HCL Tech, Tata Elxsi and Just Dial fell up to 1.69%. While Infosys shares went up by 3% to the day’s high of Rs 1,006.85 after the IT major has posted a rise in net profit by 1.4% to Rs 3,483 crore. Shares MindTree and KPIT were also trading higher, up 0.28% and 0.85% respectively.
India’s largest software services firm, Tata Consultancy Services (TCS) yesterday reported a 5.9% decline in its consolidated net profit at Rs 5,945 crore for the April- June quarter, hit by currency volatility. It had posted a net profit of Rs 6,317 crore in the year-ago period, the Mumbai-based firm said in a BSE filing.
The company, however, posted a marginal increase of 1% in its consolidated revenue at Rs 29,584 crore during the quarter as against Rs 29,305 crore a year earlier. Compared to the January-March 2017 quarter, its net profit during the period under review fell 10% while revenue slipped 0.2%.
Earlier Yesterday, TCS CEO Rajesh Gopinathan said that the company had seen a steady performance in April-June despite challenging global environment. The IT company recorded over 3.5% growth across all segments barring BFSI and retail, Gopinathan said, adding that BFSI grew at 2.3% during the quarter in constant currency terms. Among the company’s other businesses, Retail & Consumer Products Group’s revenue was up 2%; Lifescience & Healthcare was up 4.7%; while manufacturing was up 3.8% in constant currency terms.