TCS tumbles on outlook warning

TCS fell 5.22% to Rs 2,319.15 at 10:05 IST on BSE after the company warned of a slowdown in discretionary spending in its banking and financial services vertical by its US clients.

On BSE, so far 1.23 lakh shares were traded in the counter, compared with average daily volume of 66,344 shares in the past one quarter. The stock hit a high of Rs 2,367 and a low of Rs 2,287 so far during the day.

The stock hit a 52-week high of Rs 2,769 on 5 October 2015. The stock hit a 52-week low of Rs 2,119 on 29 February 2016.

The stock had underperformed the market over the past 30 days till 7 September 2016, falling 7.68% compared with 3% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 5.06% as against Sensex's 8.08% rise.

The large-cap company has equity capital of Rs 197.04 crore. Face value per share is Re 1.

TCS announced after market hours yesterday, 7 September 2016, that it intends to update investors on business trends in Q2 September 2016. Based on data at the end of August 2016, the company has characterized customer outlook as one marked by abundant caution, with some holding back of discretionary spending - particularly in the banking and financial services (BFSI) vertical in the United States - resulting in a sequential loss of momentum.

The BFSI vertical reportedly contributed around 40% to the company's revenue in Q1 June 2016.

Meanwhile, some other media reports suggested that TCS' chief marketing officer (CMO) John Lenzen has quit. Lenzen, who was based out of Chicago, joined TCS in 2004, and was a member of the Tata Group Brand Advisory Council.

He has already updated his LinkedIn profile and lists his current designation as CMO at CareerBuilder, a Chicago-based recruitment software firm, reports added.