TCS declines slightly after announcing Q2 results

TCS fell 0.2% to Rs 2,323.95 at 9:20 IST on BSE after the company reported a 4.3% growth in its consolidated net profit at Rs 6586 crore on 0.1% decline in revenue to Rs 29284 crore in Q2 September 2016 over Q1 June 2016.

The result was announced after market hours yesterday, 13 October 2016.

Meanwhile, the S&P BSE Sensex was up 24.75 points or 0.09% at 27,667.86.

On BSE, so far 35,000 shares were traded in the counter as against average daily volume of 1.24 lakh shares in the past one quarter. The stock hit a high of Rs 2,325.50 and a low of Rs 2,298.85 so far during the day.

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

Commenting on the company's Q2 performance, CEO and MD, N Chandrasekaran said it has been an unusual Q2 for TCS. Growing uncertainties in the environment is creating caution among customers and resulted in holdbacks in discretionary spending this quarter, he said. In addition, volatility in markets like India and Latin America also muted revenue growth, he said. It has been a good quarter from a profitability perspective where despite multiple headwinds the company's disciplined approach and focus on operations has helped it deliver a strong margin performance, Chandrasekaran said.

Rajesh Gopinathan, Chief Financial Officer of TCS said that Q2 September 2016 has been a quarter of good financial performance with sequential improvement in profitability and strong cash generation despite multiple headwinds including global currency and market volatility through the quarter.

TCS declared a second interim dividend of Rs 6.50 per share for the year ending 31 March 2017 (FY 2017).

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.

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