Expert says TCS missed both revenue and margin in June quarter results
Expert says TCS missed both revenue and margin in June quarter results
Shares of Tata Consultancy Services (TCS) on Monday fell about 5%₹55,471.22 crore wiped out from post-market valuation Company’s June quarter earnings did not meet market expectations,
The stock closed 4.64% lower at ₹3,113.25 on BSE. During the day, it declined by 4.87% to ₹3,105.85.
On NSE, it closed 4.70% lower at ₹3,112.
Its market capitalization (mcap) fell from ₹55,471.22 crore to ₹11,39,154.17 crore on the BSE.
“TCS on the stock specific front fell over 4% as Q1 FY23 results missed estimates,” said Mohit Nigam, head of PMS at Hem Securities.
June quarter results
The country’s largest software exporter TCS on Friday reported a 5.2% rise in net profit for the June quarter to ₹9,478 crore, restricted by the impact of annual salary hikes and promotions, which have dented operating profit margins for multi-quarters. taken to a lower level.
The Tata group company, which is the first to report earnings in the country’s $220 billion-plus software esports industry, said it does not see any adverse business impact due to concerns surrounding a slowdown in its key markets.
It reported a 16.2% growth in revenue for the quarter to ₹52,758 crore, All major geographies and business segments reported strong numbers, but it was operating profit margin, which fell to 23.1% – compared to the aspirational band of over Very low 26% – which hurt profit growth.
The company’s managing director and chief executive Rajesh Gopinathan indicated that it is down to margins, which are attributable to annual salary hikes and declines for promotions, which drilled a 1.50% hole.
Brokerage firm Prabhudas Lilladher said the company missed both revenue and margin in its June quarter results.
According to a research report on TCS by Emkay Global Financial Services, “The operating performance for Q1 FY23 was slightly below expectations.”
Other IT stocks fall
Other IT stocks also declined, with frontline firms such as HCL Technologies, Infosys, Wipro and Tech Mahindra falling 4.10-1.83%.
The BSE’s Information Technology index also closed at 28,020.72, down 2.70%.
The 30-share BSE benchmark ended 86.61 points or 0.16% lower at 54,395.23.
“As the domestic market turned its focus towards quarterly results, a weak opening in IT earnings hurt sentiments, with the benchmark indices opening on a weak note. However, with support from banking, metals and energy stocks, the domestic market declined. “Its losses have flattened out,” said Vinod Nair, head of research, I. Geojit Financial Services.