Shares of the country’s largest information technology company – Tata Consultancy Services (TCS) – fell as much as 1.3 per cent to hit an intraday low of Rs 3,211.85 after it reported June quarter earnings which were below analysts’ estimated. TCS’ net profit in June quarter declined 2.57 per cent to Rs 9,008 crore compared with Rs 9,246 crore crore in the previous quarter. According to Refinitiv IBES data, analysts were expecting the IT giant to report net profit of Rs 9,372 crore.
However, on an annual basis, Tata Consultancy Services reported a 29 per cent rise in quarterly profit powered by higher demand for cloud services and strong growth in its mainstay banking and finance business.
TCS’s revenue from operations advanced 4 per cent sequentially to Rs 45,411 crore as against Rs 43,705 crore in the previous quarter. Its operating margin or EBIT margin expanded 1.9 per cent annually to 25.5 per cent and in constant currency terms, TCS’ revenue advanced 16.4 per cent annually.
During the quarter, TCS added 20,409 employees and its workforce strength stood at 5,09,058 employees.
“I am humbled that in a personally challenging quarter to many, TCSers demonstrated phenomenal character in helping each other, be meaningful to the communities and delivered on our commitments to clients. On that backdrop, our business in North America, BFSI and Retail all showed an appreciable growth which underlines the resilience of our operating model, relevance of our offerings and above all, the passion and dedication of our associates. Given the variants of the virus and fears of a potential third wave, we are watchful of the emerging situation and remain optimistic of the opportunities in our core markets and verticals. We are well positioned and operating diligently to participate in them aggressively,” Rajesh Gopinathan, Chief Executive Officer and Managing Director, said in a statement.
As of10:10 am, TCS shares traded 0.7 per cent lower at Rs 3,235.