TCS drops after declaring Q3 result

TCS lost 3.02% to Rs 2,280.30 at 09:18 IST on BSE after the company reported 15.1% rise in consolidated net profit to Rs 5333 crore on 1.5% increase in revenue to Rs 21294 crore in Q3 December 2013 over Q2 September 2013.

The result was announced after market hours on Thursday, 16 January 2014.

Meanwhile, the S&P BSE Sensex was down 32.34 points or 0.15% at 21,232.84

On BSE, so far 21,267 shares were traded in the counter as against average daily volume of 1 lakh shares in the past one quarter.

The stock hit a high of Rs 2,300 and a low of Rs 2,275 so far during the day. The stock had hit a record high of Rs 2,384.20 on 14 January 2014. The stock had hit a 52-week low of Rs 1,300.10 on 23 January 2013.

The large-cap IT company has equity capital of Rs 195.87 crore. Face value per share is Re 1.

TCS' operating profit grew 0.5% to Rs 6337 crore in Q3 December 2013 over Q2 September 2013. Operating margin was reported at 29.8% in Q3 December 2013.

Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: "Strong international demand for our services and discipline in execution has helped TCS maintain its momentum and post robust growth in volumes as well as realisation. Our diversified market presence and services portfolio have helped us overcome seasonal weakness and soft demand in the Indian market.

Mr Chandrasekaran added: Based on initial discussions with our customers we believe 2014 will be a stronger year for us than 2013, as customers execute their business plans in a relatively stable environment. With Digital technologies rapidly changing the way an enterprise operates in multiple dimensions, our continuous investments positions us well to help customers reimagine their business.

Rajesh Gopinathan, Chief Financial Officer, said: We have been able to maintain our profitability by operating in a disciplined manner while sustaining our investments in customer-facing initiatives globally. We have also been able to significantly increase our cash generation due to efficient working capital management.

Growth in Q3 was driven by industries like Life Science & Healthcare, Manufacturing, Media, Travel & Hospitality and Telecom. The company's broad based presence across markets and services helped overcome seasonal weakness in some markets. Europe led growth, driven by the continuous investments being made in that market, while North America and UK also grew during the quarter. Among growth markets, Latin America, APAC and MEA registered strong growth. India business suffered from volatility and declined sequentially. Among service lines, Business Process Services, Enterprise Solutions, Global Consulting were the leaders.

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

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