TCS shares down 3%; mcap dips Rs 15,447 cr post Q1 earnings

TCS shares today ended over 3 per cent lower on profit-booking after the company's quarterly earnings failed to cheer investors even as the IT major reported a 9.9 per cent jump in net profit for the April-June period of the current fiscal.
After falling 3.66 per cent to Rs 2,428.05 in intra-day trade, shares of the company finally ended at Rs 2,441.90, down 3.11 per cent on BSE.
On NSE, it went down by 3 per cent to end at Rs 2,445.35.
Following weakness in the stock, the company's market valuation also fell by Rs 15,447.2 crore to Rs 4,81,158.80 crore.

In terms of volume, 2.89 lakh shares of the company were traded on BSE and over 41 lakh shares changed hands at NSE during the day.
"TCS posted results below expectations on the sales front, while the net profit growth came in higher than expected on the back of better than expected EBIT and better than expected other income," said Sarabjit Kour Nangra, VP Research IT of Angel Broking.

In its best performance in six quarters, TCS yesterday reported 9.9 per cent jump in net profit at Rs 6,317 crore for the April-June period, buoyed by multi-billion dollar deals in the European and North American markets.

In dollar terms, net income stood at USD 944 million for the quarter under the Indian Accounting standards, or Rs 32.06 per share. Consolidated gross revenue on constant currency terms jumped 14.2 per cent to Rs 29,305 crore or USD 4.36 billion, Chief Executive and Managing Director N Chandrasekaran had said.
The numbers, however, are not so robust on a sequential basis.
While net profit slipped 0.4 per cent due to forex volatilities and other externalities like 8-12 per cent salary hike impacting margins, revenue rose just 3.1 per cent.
"TCS Q1 FY17 revenues were below expectations, while margins were above expectations," brokerage firm Prabhudas Lilladher said in a report.