TCS shares close 1 pc lower after Q2 results

Shares of Tata Consultancy Services (TCS) pared most of its early losses and closed nearly 1 per cent lower on Friday after the company's September quarter earnings failed to meet market expectations.

The scrip which declined 3.76 per cent to Rs 1,929 during the day on the BSE finally closed at Rs 1,987.05, 0.87 per cent lower.

On the NSE, it dropped 0.77 per cent to close at Rs 1,989.

On the traded volume front, 4.77 lakh shares were traded on the BSE and 1.25 crore shares on the NSE.

"TCS reported muted Q2 FY20 numbers, with 0.6 per cent quarter-on-quarter (QoQ) dollar revenue growth missing street's 2.1 per cent estimate and operating margin falling QoQ to 24 per cent in a seasonally strong quarter," according to a report by Edelweiss Research.

The country's largest software exporter on Thursday reported a tepid growth in net income for the September quarter at Rs 8,042 crore, and guided towards more challenges putting a big question mark over its ability to deliver the double-digit growth.

TCS posted a 1.8 per cent rise in consolidated net profit at Rs 8,042 crore for the quarter ended September 30, 2019.

It had posted a net profit of Rs 7,901 crore in the year-ago period, TCS said in a BSE filing.

Revenue of the Mumbai-based firm grew 5.8 per cent to Rs 38,977 crore in the July-September quarter compared with Rs 36,854 crore in the same quarter of the previous fiscal, it added.

"TCS's Sep'19 quarter was a miss on both growth and margin fronts," as per a report by Emkay Global Financial Services.