TCS shares plummets 5.6%, top loser on BSE Sensex, NSE Nifty post earnings

Written by PTI | Mumbai | Updated: Jan 18 2014, 01:03am hrs
TCSTCS, India's largest software services exporter, had reported a net profit of Rs 3,550 crore in the year-ago period.
Shares of Tata Consultancy Services (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.

At 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 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 2013 period revenues 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 by 31.7 per cent to USD 858 million in reporting quarter against USD 652 million in the same period of previous fiscal.

Revenues were up by 17 per cent to USD 3.44 billion against USD 2.95 billion during the same period a year ago.

Sequentially in dollar terms, net profit rose by 14.7 per cent while revenues were up by 3 per cent.