 "TCS dips post Q1 results")
Tata Consultancy Services (TCS) was trading 2% lower at Rs 2,476 on the BSE after the company reported a marginal 0.46% decline in consolidated net profit at Rs 6,318 crore for the quarter ended June 2016 (Q1FY17) on a sequential basis. The company had profit of Rs 6,347 crore in March 2016 quarter and Rs 5,773 crore in June 2015 quarter.
Revenue for the quarter at Rs 29,305 crore, was up 3% from Rs 28,449 crore in the previous quarter. Operating margin declined by 80 basis points (bps) to 25.1% in Q1FY17 from 25.9% in Q4FY16.
“TCS posted results below expectations on the sales front while the net profit growth came in higher than expected on back of better expected EBIT and better than expected other income,” said Ms. Sarabjit Kour Nangra, VP Research- IT, Angel Broking.
“On the operating front the EBITDA and EBIT margins came in at 26.7% and 25.1% a dip of around 97 bps and around 98bps QoQ respectively, mostly in line with expectations. In terms, of client addition, during the quarter 4 were added in US $50mn+ and 6 in US $20mn+ revenue band. LTM attrition down further QoQ to 13.6% in IT services,” the brokerage firm said in a client note with maintains ‘BUY’ rating on the stock with a target price of Rs 3,004.
The stock hit a low of Rs 2,465 on the BSE in early morning trade. A combined 1.4 million shares changed hands on the counter on the BSE and NSE till 10:16 AM.
Revenue for the quarter at Rs 29,305 crore, was up 3% from Rs 28,449 crore in the previous quarter. Operating margin declined by 80 basis points (bps) to 25.1% in Q1FY17 from 25.9% in Q4FY16.
“TCS posted results below expectations on the sales front while the net profit growth came in higher than expected on back of better expected EBIT and better than expected other income,” said Ms. Sarabjit Kour Nangra, VP Research- IT, Angel Broking.
“On the operating front the EBITDA and EBIT margins came in at 26.7% and 25.1% a dip of around 97 bps and around 98bps QoQ respectively, mostly in line with expectations. In terms, of client addition, during the quarter 4 were added in US $50mn+ and 6 in US $20mn+ revenue band. LTM attrition down further QoQ to 13.6% in IT services,” the brokerage firm said in a client note with maintains ‘BUY’ rating on the stock with a target price of Rs 3,004.
The stock hit a low of Rs 2,465 on the BSE in early morning trade. A combined 1.4 million shares changed hands on the counter on the BSE and NSE till 10:16 AM.
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