TCS shares fall nearly 2 pc; mcap declines by Rs 19,118 cr  | The Financial Express

TCS shares fall nearly 2 pc; mcap declines by Rs 19,118 cr 

On Monday, TCS reported an 8.4 per cent growth in its September quarter net profit at Rs 10,431 crore, crimped by a dent on margins.

TCS shares fall nearly 2 pc; mcap declines by Rs 19,118 cr 
Its market valuation fell by Rs 19,118.43 crore to Rs 11,22,944.57 crore. (File)

Shares of Tata Consultancy Services (TCS) on Tuesday fell by nearly 2 per cent, a day after the firm announced its September quarter earnings.

The results were announced post market hours on Monday.

The stock of the IT services exporter declined 1.67 per cent to settle at Rs 3,068.95 apiece on the BSE. During the day, it fell 2.12 per cent to Rs 3,054.75.

On the NSE, it went lower by 1.74 per cent to end at Rs 3,064 apiece.

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In volume terms, 14.29 lakh shares of the company were traded on the BSE and over 47.30 lakh shares on the NSE during the day.

Its market valuation fell by Rs 19,118.43 crore to Rs 11,22,944.57 crore.

The 30-share BSE benchmark ended 843.79 points or 1.46 per cent lower at 57,147.32.

On Monday, TCS reported an 8.4 per cent growth in its September quarter net profit at Rs 10,431 crore, crimped by a dent on margins.

The Tata group company, however, said the operating environment is “challenging” and warrants “vigilance”, even though the headwinds posed by factors like recession in its biggest market US, rising inflation around the world and currency volatilities are yet to materialise into its order pipeline.

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The reporting quarter saw an 18 per cent jump in revenue to Rs 55,309 crore as against Rs 46,867 crore in the year-ago period, but it was a 1.60 percentage points narrowing in the operating margin to 24 per cent which crimped the profit growth.

Brokerage firm Emkay said the revenue and margins came in line with its expectations, while analysts at its peer Reliance Securities said IT services would not remain immune to worsening global macros in terms of rising inflation, economic slowdown, currency headwinds and likely cut on spending.

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First published on: 11-10-2022 at 18:31 IST