Tata Consultancy Services (TCS) Share Price, 11 July 2022: The TCS stock fell 4.70 per cent to end at Rs 3,112.00 apiece on the National Stock Exchange while on the BSE it declined 4.64 per cent to settle at Rs 3,113.25.
TCS Shares Drops 4.76% on NSE While 4.71% on BSE: Logos of Tata Consultancy Services (TCS) are displayed at the venue of the annual general meeting of the software services provider in Mumbai. (REUTERS/File Photo)
Shares of India’s largest IT services firm Tata Consultancy Services (TCS) fell 4.7 per cent on Monday after the company missed its quarterly profit estimates by a wide margin as employee-related expenses soared.
The TCS stock fell 4.70 per cent to end at Rs 3,112.00 apiece on the National Stock Exchange while on the BSE it declined 4.64 per cent to settle at Rs 3,113.25. During the session, it hit an intraday low of Rs 3,105.85 on the BSE and Rs 3,106.00 on the NSE.
On Monday, 69,74,600 shares of TCS were traded on the NSE and 2,02,015 shares exchanged hands on the BSE, data from the respective bourses showed.
On Friday, after the market hours, TCS reported a 5.2 per cent year-on-year rise in the April-June quarter (Q1) net profit at Rs 9,478 crore. The annual wage hikes and promotions took operating profit margins to multi-quarter lows. Its board also declared an interim dividend of Rs 8 per equity share at a meeting held Friday.
TCS reported a 16.2 per cent year-on-year growth in the revenue at Rs 52,758 crore for Q1, with all key geographies and business segments reporting strong numbers.
“We are starting the new fiscal year on a strong note, with all-round growth and strong deal wins across all our segments. Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties,” said CEO & MD Rajesh Gopinathan.
He said the new organisation structure has settled in nicely, getting the company closer to its clients and making it nimbler in a dynamic environment, adding, “Looking ahead, we remain confident in the resilience of technology spending and the secular tailwinds driving our growth.”
Reacting to the Q1 results of the IT giant, Mitul Shah, Head of Research at Reliance Securities in a note said, “TCS is likely to be one of the key beneficiaries of medium-term uptrend in technology spending. We expect TCS to gain market share on the back of vendor consolidation and captive monetization efforts. However, moderation in EBIT margins and lower order book would reduce pace of earnings growth going ahead and may lead to downward revision to valuation multiple. We are positive on structural IT story and remain constructive on TCS being key beneficiary of IT up cycle. We remain positive on stock given its strong revenue growth, elevated EBIT margin and industry leading return ratios. At present we have BUY rating on the stock.”
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