TCS shares down over 4% post result, mcap dips Rs 19,424 crore

Mumbai: Shares of IT major TCS fell by over 4 percent Wednesday wiping out Rs 19,424 crore from its market valuation after the company's September quarter earnings failed to enthuse investors.

The blue-chip stock ended the day with a loss of 4.39 percent at Rs 2,483.40 on BSE. During the day, it declined by 4.51 percent to Rs 2,480.

On NSE, shares of the company were down 4.41 percent to Rs 2,483.70 at closing.

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The stock was the biggest loser on both Sensex and Nifty.

The company's market valuation dipped by Rs 19,423.93 crore to Rs 4,89,336.07 crore.

In terms of volume, 3.62 lakh shares of the firm changed hands at BSE and over 41 lakh shares were traded at NSE.

"TCS posted results below expectation on sales front and net profit," said Sarabjit Kour Nangra, VP Research - IT, Angel Broking.

Country's largest IT services exporter TCS yesterday reported over 16 percent rise in net profit at Rs 6,084.66 crore for the September quarter, backed by strong performance of its digital platform and recovery in Latin America and the home market.

The firm had reported a profit of Rs 5,244.28 crore in the corresponding period last fiscal.

Tata Consultancy Services' (TCS) order book grew 30 percent in the quarter, the highest ever for the company, giving the indication that things are looking good, Managing Director and Chief Executive N Chandrasekaran said.

The company's total income from operations for the quarter rose 14.06 percent to Rs 27,165.48 crore as against Rs 23,816.48 crore last year. The figures are in Indian Gaap.

According to the company statement, as per IFRS, the net profit for Q2 stood at Rs 6,055.20 crore whereas the revenue was Rs 27,165.50 crore.

Meanwhile, weakness was also seen in other IT stocks, where Infosys was down 0.11 per cent, Wipro lost 0.47 percent and Tech Mahindra fell by 2.14 percent.

Consequently, BSE IT index was down 1.32 percent to settle at 11,017.42.

In the broader market, the benchmark BSE Sensex fell by 66.87 points to end at 26,779.66.