New Delhi: Shares of Tata Consultancy Services TCS on Monday tumbled over 6 per cent after the company’s September quarter earnings missed market expectations.
The stock tanked 6.32 per cent to close at Rs 3,686.50 apiece on the BSE. During the day, it tumbled 6.99 per cent to Rs 3,660.
On the NSE, the stock declined 6.29 per cent to close at Rs 3,687.95 a unit.
TCS’ market valuation also eroded by Rs 92,032.4 crore to Rs 13,63,655.29 crore on the BSE. TCS was also the top loser in the Sensex and Nifty pack.
In traded volume terms, 12.80 lakh shares were traded on the BSE and over 1.18 crore shares of the company changed hands on the NSE during the day.
“TCS Q2 operating performance missed expectations, reporting lower-than-expected revenue and EBITM (earnings before interest, taxes and corporate overhead or management),” according to a report by Emkay Global Financial Services Ltd.
The IT major on Friday reported a 14.1 per cent rise in consolidated net profit at Rs 9,624 crore in the September 2021 quarter, aided by broad-based growth across geographies and verticals.
The Mumbai-based company had logged a net profit of Rs 8,433 crore (excluding adjustment towards a legal claim) in the year-ago period.
Its revenue grew 16.7 per cent to Rs 46,867 crore for the September 2021 quarter, from Rs 40,135 crore in the year-ago period.
The earnings were announced after market hours on Friday.
Other Information Technology companies like Tech Mahindra, Infosys and HCL Tech also declined up to 2.76 per cent.
“The IT sector was under pressure as initial earnings release failed to meet market expectations,” said Vinod Nair, Head of Research at Geojit Financial Services.