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Sensex update: TCS plunges 4.5 per cent after quarterly results

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New Delhi :Shares of IT major TCS plunged 4.5 per cent today after the company’s September quarter earnings failed to enthuse investors.

The bellwether stock fell by 4.4 per cent to Rs 2,483.05 on the BSE. On NSE, it was down 4.46 per cent to Rs 2,482.55.

The stock was the biggest loser on both Sensex and Nifty. “TCS posted results below expectation on sales front and
net profit,” said Sarabjit Kour Nangra, VP Research – IT, Angel Broking.

Country’s largest IT services exporter TCS yesterday reported over 16 per cent rise in net profit at Rs 6,084.66 crore for the quarter to September, backed by strong performance of its digital platform and recovery in Latin America and the home market.

The firm had reported a profit of Rs 5,244.28 crore in the corresponding period last fiscal.

Tata Consultancy Services’ (TCS) order book grew 30 per cent in the quarter, the highest ever for the company, giving the indication that things are looking good, managing director & chief executive N Chandrasekaran said.
The company’s total income from operations for the quarter rose 14.06 per cent to Rs 27,165.48 crore as against Rs 23,816.48 crore last year. The figures are in Indian Gaap.

However, according to the company statement, as per IFRS, the net profit for Q2 stood at Rs 6,055.20 crore whereas the revenue was Rs 27,165.50 crore.

The rupee recovered by 9 paise to
65.09 against the dollar in early trade on fresh selling of the US currency by exporters and banks.

Besides, the dollar’s weakness against major world currencies after poor data in China and Europe bolstered prospects the Federal Reserve will delay hiking its key interest rate strengthened the rupee sentiment.

The rupee had fallen by 43 paise to close at 65.18 against the American currency yesterday on persistent dollar demand from banks and importers.

Domestic equity markets opened with losses which capped the rupee gains, they said.

The benchmark BSE Sensex fell by 133.25 points, or 0.49 per cent, to 26,713.28 in early trade.

PTI