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On Monday, Tata Consultancy Services Ltd’s shares plunged 7 per cent to Rs 3,674.55 on the BSE intra-day trade after the company’s September quarter net profit missed Street expectations.
The IT company posted a slightly lower-than-expected 14.1 per cent year-on-year growth in net profit and 16.8 per cent YoY rise in revenue in the second quarter (Q2) of the financial year 2021-22 (FY22). The stock of India’s most comprehensive information technology (IT) services player had hit a record high of Rs 3,990 on October 8, 2021.
In Q2, TCS’ net profit rose to Rs 9,624 crore, a 6.8 per cent sequential rise. Revenue, meanwhile, grew to Rs 46,867, up 3.2 per cent QoQ. The firm’s top line and margin growth both missed Bloomberg estimates. According to a Bloomberg poll, analysts had estimated revenue of Rs 47,339 crore.
“The softness in growth was also evident in the total contract value (TCV), which came in at $7.6 billion, as against $8.1 billion in Q1, and $8.6 billion in Q2FY21. In dollar terms, revenue for the quarter came in at $6.33 billion, a growth of 3.2 per cent sequentially. The Street was expecting this to be around 4 per cent,” media reported.
Stock Covered in the news
