TCS slumps as Q2 net profit declines q-o-q

Net profit for the second quarter ended declined nearly 6% to Rs 5,244 crore compared with Rs 5,568 crore in the first quarter

Shares of Tata Consultancy Services dropped nearly 7% to Rs 2,493 after the IT major reported nearly 6% drop in net profit at Rs 5,244 crore for the second quarter ended September 2014 compared with Rs 5,568 crore in the first quarter ended June 2014.

However, total income increased nearly 8% to Rs 23,816 crore during the second quarter compared with Rs 22,111 crore in the first quarter.

The board has announced a second interim dividend of Rs. 5 per equity share of face value Rs. 1 each.

The company also announced the merger of subsidiary CMC with itself, where shareholders would get 79 TCS shares of Rs 1 each for 100 CMC shares of Rs 10 each.

Meanwhile, the management continues to be bullish and expects to beat Nasscom's revenue growth target of 13-15 per cent for this financial year.