TCS slips on profit booking after robust Q2 results

TCS fell 0.82% to Rs 2200 at 9:19 IST on BSE after consolidated net profit rose 20.7% to Rs 4633 crore on 16.6% growth in revenue to Rs 20977 crore in Q2 September 2013 over Q1 June 2013.

The result was announced after market hours on Tuesday, 15 October 2013. Shares of TCS had run up ahead of the result announcement. Profit booking emerged after the stock rose 7.50% in the preceding five trading sessions to Rs 2218.15 on Tuesday, 15 October 2013, from a recent low of Rs 2063.35 on 8 October 2013.

Meanwhile, the BSE Sensex was up 30.36 points, or 0.15%, to 20,577.98.

On BSE, 40,000 shares were traded in the counter compared with average volume of 1.53 lakh shares in the past one quarter.

The stock hit a high of Rs 2,239.90 and a low of Rs 2,160.05 so far during the day. The stock hit a record high of Rs 2,258.05 on 15 October 2013. The stock hit a 52-week low of Rs 1,197.60 on 18 December 2012.

The stock had outperformed the market over the past one month till 15 October 2013, rising 13.74% compared with the Sensex's 4.13% rise. The scrip had also outperformed the market in past one quarter, gaining 35.14% as against Sensex's 2.56% rise.

The large-cap IT company has an equity capital of Rs 195.72 crore. Face value per share is Re 1.

TCS' operating margin stood at 30.1% in Q2 September 2013.

Commenting on the Q2 performance, TCS Chief Executive Officer and Managing Director, N Chandrasekaran said: "It has been another great quarter. We have demonstrated all-round strong growth across markets and industries, highlighted by efficient and rigorous execution. Our ongoing investments in industry-led solutions and our efforts to provide insights and articulate the relevance of the digital revolution to business is helping us gain mindshare with customers and differentiate the TCS brand in the market. We continue to see a robust demand pipeline across markets and a unique opportunity to strategically partner and participate with clients as they reimagine their future in multiple dimensions".

TCS Chief Financial Officer Rajesh Gopinathan said: "Strong volumes, currency tailwinds and firm execution helped us post industry-leading operating margins in this quarter. Our ability to manage operations with a degree of discipline has helped maintain the tempo of investments needed to sustain growth as well as provide superior shareholder returns".

TCS said that growth in Q2 was broad-based with all industries contributing to this holistic performance. Growth was led by life sciences, media, energy & utilities and BFSI. All core markets grew smartly with Europe, North America and UK leading the pack, TCS said. There was balanced growth across IT and other service lines led by Asset Leverage Solutions, Assurance, Enterprise Solutions, Engineering Services and Infrastructure, TCS said.

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

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