Shares of Tata Consultancy Services (TCS) slipped as much as 2.17 per cent intraday on Wednesday despite the company reporting 5.42 per cent quarter-on-quarter growth in its March quarter net profit at Rs 6,413.12 crore while margins remained below expectations.
At 11.58 am, shares of TCS were trading 1.80 per cent down at Rs 2,477. The scrip opened at Rs 2,548 and has touched a high and low of Rs 2,548 and Rs 2,467.70, respectively, in trade so far.
The scrip closed 2.79 per cent down at Rs 2,451.90.
Govind Agarwal, research analyst, Prabhudas Lilladher said, “TCS Q4FY16 revenues were largely in line with estimates, while margins were below expectations.”
Kotak Securities said, “EBIT margin decline of 50 basis points “disappointed,” which the management attributed to accelerated investments in digital business. These investments will continue in FY2017 and act as additional headwind”
In contrast, rival Infosys on Friday predicted strong revenue growth and reported its third successive estimate-beating earnings on new client wins.
(With agency inputs)
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