OPEN APP
Home >Companies >News >TCS falls over 2% on flat Q3 growth, weighs on BSE IT Index

TCS falls over 2% on flat Q3 growth, weighs on BSE IT Index

On Friday, TCS reported a 0.2% year-on-year (YoY) growth in net profit at  ₹8,118 crore for the third quarter. Photo: BloombergPremium
On Friday, TCS reported a 0.2% year-on-year (YoY) growth in net profit at 8,118 crore for the third quarter. Photo: Bloomberg

  • The BSE IT index also tumbled 1% to 15,951.45 points, dragged down by index heavyweight TCS, India's biggest IT services provider
  • Overall subdued sentiment weighed on other IT firms as well, with shares of Infosys Ltd slipping 0.4% to 764.80

NEW DELHI : Shares of Tata Consultancy Services Ltd (TCS) fell 2.5% in Monday’s trade, after the company saw muted growth in the quarter-ended December.

The BSE IT index also tumbled 1% to 15,951.45 points, dragged down by index heavyweight TCS, India's biggest IT services provider.

Overall subdued sentiment weighed on other IT firms as well, with shares of Infosys Ltd slipping 0.4% to 764.80, Wipro Ltd down 1.2% and HCL Technologies falling Ltd by 1% so far in today’s trade.

On Friday, TCS reported a 0.2% year-on-year (YoY) growth in net profit at 8,118 crore for the third quarter of the current financial years. The company’s revenues rose 6.7% YoY to 39,854 crore. In terms of constant currency, revenues grew 6.8% on year, with operating margin expanding to 25%. However, client spending across major verticals such as banking, financial services and retail remained a cause for concern.

The company reported an operating margin of 25.6%, while net margin stood at 20.4%. TCS has decided not to separately disclose the share of digital revenues, as these projects are increasingly becoming part of its traditional service areas. The company also announced interim dividend of 5 per share.

Among peers, Infosys reported a net profit of 4,466 crore for the December quarter, up 10.6% from 4,037 crore in the three months ended September. HCL Technologies, beating the Street’s estimates, reported all-time high net profit and revenue growth. While profit rose 16.3% on year to 3,037 crore during the third quarter, revenue was up 15.5% at 18,135 crore.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout