TCS drops after announcing muted Q1 results

TCS lost 0.91% to Rs 2,497.30 at 9:17 IST on BSE after consolidated net profit fell 0.4% to Rs 6317 crore on 3% rise in revenue to Rs 29305 crore in Q1 June 2016 over Q4 March 2016.

The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours yesterday, 14 July 2016.

Meanwhile, the S&P BSE Sensex was up 15.53 points or 0.06% at 27,957.64.

On BSE, so far 19,000 shares were traded in the counter as against average daily volume of 61,000 shares in the past two weeks. The stock hit a high of Rs 2,524 and a low of Rs 2,465.05 so far during the day. The stock had hit a 52-week high of Rs 2,769 on 5 October 2015. The stock had hit a 52-week low of Rs 2,119 on 29 February 2016.

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

TCS' operating income fell 0.9% to Rs 7347 crore in Q1 June 2016 over Q4 March 2016.

Commenting on the Q1 performance, N Chandrasekaran, CEO and MD, TCS, said that strong execution and accelerating customer adoption of cloud, big data & analytics has driven broad-based growth across key markets and industries. The company's investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market advantage to gain a competitive edge, he added.

Rajesh Gopinathan, Chief Financial Officer, TCS, said this has been a quarter of good financial performance balancing revenue growth, profitability and cash generation. The company's disciplined approach to operations have helped counter strong headwinds in the form of annual salary hikes and promotions as well as global currency and market volatility through the quarter. The company continues to invest in people, platforms and products as it looks to strengthen competitive position across key markets, he added.

TCS declared an 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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