TCS declines as operating profit margin drops in Q4

TCS lost 1.78% to Rs 2,477.50 at 10:20 IST on BSE after the company reported a 50 basis points decline in its consolidated operating profit margin at 27.7% in Q4 March 2016 from 28.2% in Q3 December 2015.

Meanwhile, the S&P BSE Sensex was up 42.54 points or 0.16% at 25,858.90.

On BSE, so far 95,000 shares were traded in the counter as against average daily volume of 77,522 shares in the past one quarter. The stock hit a high of Rs 2,548 and a low of Rs 2,467.70 so far during the day. The stock had hit a 52-week low of Rs 2,119 on 29 February 2016. The stock had hit a 52-week high of Rs 2,769 on 5 October 2015. The stock had outperformed the market over the past one month till 18 April 2016, gaining 3.92% compared with Sensex's 3.46% rise. The scrip had also outperformed the market in past one quarter, advancing 10.51% as against Sensex's 6.73% rise.

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

TCS' consolidated operating profit rose 2% to Rs 7887.27 crore in Q4 March 2016 over Q3 December 2015. On consolidated basis, the company's net profit rose 5% to Rs 6413.12 crore on 4% growth in sales to Rs 28448.61 crore in Q4 March 2016 over Q3 December 2015. The result was announced after market hours on Monday, 18 April 2016. The stock market was closed yesterday, 19 April 2016 for a holiday.

Higher other income boosted TCS' bottom line during the quarter. Other income rose 32% to Rs 917.01 crore in Q4 March 2016 over Q3 December 2015.

During the quarter, TCS saw a broad based growth with the core portfolio performing strongly led by BFSI, retail and manufacturing.

TCS' top management in a post Q4 result conference call stated that with most of the headwinds behind, the company is well placed to deliver a strong performance in FY 2017. The management believes that TCS' scale and digital capability positions the company strongly to become the preferred digital partner for more and more clients and win a disproportionate share of their incremental digital spending. BFSI, North America and Continental Europe have shown very good resilience and have grown very well in Q4 March 2016 with a good exit, building up strong momentum going into FY 2017. The business in Latin America has turned the corner and has done very well during the last couple of quarters.

TCS has recommended a final dividend of Rs 27 per share for the year ended 31 March 2016 (FY 2016).

TCS is an IT services, consulting and business solutions organization. The company offers a consulting-led, integrated portfolio of IT, BPS, infrastructure, engineering and assurance services.

Powered by Capital Market - Live News