TCS fails to cheer investors, posts poor results

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TCS fails to cheer investors, posts poor results
Tata Consultancy Services (TCS), India's largest software exporter failed to perform better in second quarter of Financial Year 2012. It reported a mere 6.1% growth in its net profits Year-on-Year (YoY) and 4.7% rise on quarterly basis disappointing a large number of investors.

The company's profit after tax stood at Rs 2,301 crore during the quarter against Rs 2,169 crore in the corresponding quarter of the previous year.

It's operating profit grew by 21.4% YoY to Rs 3,143 crore.

Net revenues of the company rose by 25.3% YoY to Rs 11,633 crore.

The stock of the company fell more than 7% on the Bombay Stock Exchange (BSE) on its poor performance during the quarter.

The company has delivered a stellar performance every quarter for last 18 months but did not succeed to perform in September quarter. The company met analysts' expectations in terms of its revenues but lagged behind the net profits.

TCS lost staggeringly on hedging wrongly against the dollar, while its competitor Infosys a good number of profits on rupee depreciation.

During the second quarter of FY12, TCS lost Rs 91 crore in unfavorable currency movement. According to the management, it has hedged $2.5 billion for the next two quarters.

While its software rival Infosys took a leading pie of the market by posting a better-than-expected numbers during the second quarter of FY12.

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