TCS slumps as Q2 net profit drops sequentially

TCS slumped 7.35% to Rs 2,481.80 at 9:30 IST on BSE after the company's consolidated net profit as per Indian GAAP fell 5.8% to Rs 5244 crore on 7.7% growth in revenue to Rs 23816 crore in Q2 September 2014 over Q1 June 2014..

The company announced Q2 results after market hours on Thursday, 16 October 2014.

Meanwhile, the BSE Sensex was up 23.27 points, or 0.09%, to 26,022.61.

On BSE, so far 1.25 lakh shares were traded in the counter, compared with an average volume of 75,777 shares in the past one quarter.

The stock hit a high of Rs 2,509.50 and a low of Rs 2,451 so far during the day. The stock hit a record high of Rs 2,834 on 7 October 2014. The stock hit a 52-week low of Rs 1960 on 13 December 2013.

India's largest IT services provider by sales has an equity capital of Rs 195.87 crore. Face value per share is Rs 1.

The results are as per Indian GAAP. TCS said that growth in Q2 September 2014 was broad-based with all industries growing on a sequential basis. The impact of the integration of newly merged entity in Japan also provided additional growth to units like manufacturing, hi-tech. All core markets like North America, Europe and UK grew smartly. Emerging markets continued to be volatile with India growing while Latin America faltered in Q2 September 2014. There was balanced growth across IT and other service lines led by Infrastructure Services and Engineering Services, TCS said.

Commenting on the Q2 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: Driven by strong volumes and robust utilization rates, this has been a quarter of steady, consistent performance. Our well-rounded showing has been highlighted by broad-based growth in our key markets, industries and services as we continued to deepen our engagement with customers.

Meanwhile, TCS after market hours on Thursday, 16 October 2014 also said that the board of directors of the company and CMC, a subsidiary of TCS, at meeting held on Thursday, 16 October 2014, have approved the scheme of amalgamation of CMC with TCS, based on the recommendation of the Audit Committee. As per the terms of the scheme, shareholders of CMC (other than TCS) will receive 79 equity shares of Rs 1 each of TCS for every 100 equity shares of Rs 10 each of CMC held by them.

TCS said that the board of directors of the company at its meeting held on 16 October 2014 have declared a second interim dividend of Rs 5 per share.

TCS held 51.12% in CMC as at 30 June 2014.

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