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TCS shares slump over 9% post Q2 results; mcap down Rs 46K cr

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Press Trust of India Mumbai
Last Updated : Oct 17 2014 | 5:01 PM IST
Shares of IT bellwether TCS today tumbled over 9 per cent, eroding Rs 45,824 crore from its market valuation, after its September quarter numbers failed to meet market expectations.
The scrip of the country's largest software exporter ended 8.73 per cent lower at Rs 2,444.90 on the BSE. In intra-day, it tumbled 9.17 per cent to Rs 2,433.10.
At the NSE, the stock plunged 9.15 per cent to Rs 2,433.
Following the slump in the stock, the company's market value diminished by Rs 45,823.6 crore to Rs 4,78,889.40 crore.
The blue-chip stock was also the biggest loser among frontline scrips on both Sensex and Nifty.
"TCS saw maximum selling pressure among Nifty stocks as it failed to match market's Q2 expectations," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

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TCS had yesterday posted 13.2 per cent jump in September quarter net profit at Rs 5,244 crore and remained "bullish" about the next fiscal.
Tata Consultancy Services, which is the most valued company, had reported 13.5 per cent growth in revenue at Rs 23,816 crore.
In the year-ago period, its net profit stood at Rs 4,653.9 crore.
"TCS reported Q2FY15 results below consensus expectation on all counts," brokerage firm Prabhudas Lilladher said in a report.
Unveiling the earnings figure, TCS also announced the merger of its subsidiary CMC with itself. The merger ratio is 1:1.26 or 79 TCS shares for 100 CMC shares. TCS had bought CMC from the government in the 1990s through a divestment process.
TCS revenue jumped 13.5 per cent to Rs 23,816 crore in the second quarter ended September 30 as per the Indian GAAP system of accounting.
"While the dollar revenue was much higher-than-expected, net profit came in lower-than-expected, on back of lower- than-expected EBITDA margins," said Sarabjit Kour Nangra, VP Research - IT, Angel Broking.
Meanwhile, selling pressure was also seen in other IT stocks, where Wipro fell by 1.08 per cent, Infosys was down 0.3 per cent, Tech Mahindra (1.28 per cent), Mindtree (2.27 per cent).
Led by losses in these stocks, the BSE IT fell by 4 per cent to settle at 10,130.95.

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First Published: Oct 17 2014 | 5:01 PM IST

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