TCS fell 2.09% to Rs 2,470.50 at 9:24 IST on BSE after a US court reportedly slapped nearly $1 billion penalty on the company for allegedly stealing information related to US-based Epic Systems' healthcare software.
The announcement was made on Saturday, 16 April 2016.
Meanwhile, the BSE Sensex was up 28.70 points, or 0.11%, to 25,655.45.
On BSE, so far 29,000 shares were traded in the counter, compared with an average volume of 75,899 shares in the past one quarter. The stock hit a high of Rs 2,491.85 and a low of Rs 2,449 so far during the day. The stock hit a 52-week high of Rs 2,769 on 5 October 2015. The stock hit a 52-week low of Rs 2,119 on 29 February 2016. The stock had outperformed the market over the past one month till 13 April 2016, rising 6.64% compared with 3.68% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 10.65% as against Sensex's 3.11% rise.
The large-cap IT company has an equity capital of Rs 197.04 crore. Face value per share is Re 1.
TCS, however, denied the charges and said it would appeal. The company said that it had received a jury verdict in a recently completed jury trial in a lawsuit filed by Epic Systems in the court of Western District Madison, Wisconsin. It is expected that the trial judgement will be entered in the case in the next six to eight weeks, following which the parties can file an appeal within 30 days after the judgement is filed, TCS said. The jury's verdict on liability and damages was unexpected as the company believes they are unsupported by the evidence presented during the trial, TCS said. The company added that it did not misuse or derive any benefit from downloaded documents from Epic System's user-web portal. TCS said it plans to defend its position vigorously in appeals to higher courts. The company said it appreciates the trial judge's announcement from the bench that he is almost certain he will reduce the damages award.
The jury verdict will not have any impact on the company's Q4 March 2016 and FY 2016 financial results, TCS said. The company is set to announce its Q4 March 2016 results today, 18 April 2016.
TCS' consolidated net profit fell 0.02% to Rs 6083.39 crore on 0.68% rise in total income to Rs 28058.19 crore in Q3 December 2015 over Q2 September 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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