TCS drops after announcing Chennai floods to have material impact on its Q3 revenue

TCS dropped 1.87% to Rs 2,342.55 at 9:25 IST on BSE after the company said that recent severe flooding in Chennai is expected to have a material impact on its revenue in the seasonally weak Q3 December 2015.

The company made the announcement after market hours on Friday, 11 December 2015.

Meanwhile, the S&P BSE Sensex was down 109.54 points or 0.44% at 24,934.89.

On BSE, so far 14,164 shares were traded in the counter as against average daily volume of 71,338 shares in the past two weeks.

The stock hit a high of Rs 2,345 and a low of Rs 2,335 so far during the day. The stock had hit a 52-week high of Rs 2,810 on 4 March 2015. The stock had hit a 52-week low of Rs 2,316.65 on 7 December 2015.

TCS said in its update regarding its operations in Chennai that recent severe flooding in the city led to major disruptions in its ability to function. The normal business functioning of company's facilities had to be halted in the city all week since 1 December 2015 due to flooding. This is expected to have a material impact on the company's revenue in the seasonally weak Q3 December 2015, it added. Chennai is one of the company's largest delivery function with over 65,000 employees. The majority of facilities in Chennai opened for normal business functioning on 7 December 2015, but attendance rates were lower than normal as employees were still recovering from the flood's aftermath.

TCS' consolidated net profit rose 7% to Rs 6084.66 crore 6% growth in sales to Rs 27165.48 crore in Q2 September 2015 over Q1 June 2015.

TCS is an IT services, consulting and business solutions organization. The company offers a consulting-led, integrated portfolio of IT, BPS, infrastructure, engineering and assurance services.

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