TCS share loses sheen post lacklustre Q1 results
IT major’s mcap down Rs 55,471 cr as its stock falls 5% on Monday
image for illustrative purpose
New Delhi: Shares of Tata Consultancy Services (TCS) on Monday fell nearly 5 per cent, wiping out Rs 55,471.22 crore from its market valuation, after the company's June quarter earnings failed to meet market expectations. The stock declined 4.64 per cent to settle at Rs 3,113.25 apiece on the BSE.
During the day, it went lower by 4.87 per cent to Rs 3,105.85. On the NSE, it fell 4.70 per cent to end at Rs 3,112 apiece. Its market capitalisation (mcap) tumbled Rs 55,471.22 crore to Rs 11,39,154.17 crore on the BSE.
"On a stock specific front TCS fell by more than 4 per cent as Q1 FY23 results missed estimates," said Mohit Nigam, Head - PMS at Hem Securities. The country's largest software exporter TCS on Friday reported a 5.2 per cent rise in the June quarter net profit to Rs 9,478 crore, restricted by the impact of annual wage hikes and promotions that took operating profit margins to multi-quarter lows. The Tata Group company, which is the first in the country's over $220 billion software exports industry to report earnings, however, said that it does not see any adverse business impact because of worries around recession in its key markets.
Brokerage firm Prabhudas Lilladher said the company has missed on both revenue and margins in the June quarter results. "Q1 FY23 operating performance was a tad below expectations," according to a research report on TCS by Emkay Global Financial Services.
