Shares of TCS declined nearly 3 per cent in initial trade on Tuesday after the company’s December quarter results were announced on Monday.
The stock fell 2.67 per cent to Rs 3,231 apiece on the BSE. While, at the NSE, it went down by 2.70 per cent to Rs 3,230.10 apiece.
TCS turned out to be the biggest laggard among both the Sensex and Nifty components.
BSE Sensex on Tuesday quoted 437 points, or 0.72 per cent lower at 60,310.31 in morning trade.
“TCS has given a muted quarter where, despite the growth in revenue from operations, the same is not reflected in the profitability. The last quarter of the fiscal remains a key watch out as the macro-economic environment changes will bring clarity across economies,” said Urmi Shah, Analyst, Samco Securities.
Earnings 2023 live: TCS revenue hits at Rs 58,229 crore, Profit at Rs 10,883 crore
While TCS, reported an 11 per cent rise in December quarter net profit to Rs 10,846 crore, it showed a narrowing of profit margins. TCS, which is India’s largest IT service company, reported an overall revenue of Rs 58,229 crore up by 19.1 per cent for the quarter ending in December, but a 0.5 per cent narrowing of the operating profit margin to 24.5 per cent that limited the overall profit growth.
“TCS delivered better-than-expected revenue growth in Q3, while margins came a tad below our expectations,” according to a report by Emkay Global Financial Services.
With inputs from PTI
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