TCS shares slump 4% after company reports mixed Q3 results

Stocks

oi-Sunil

By Sunil Fernandes

Updated: Friday, January 17, 2014, 10:22 [IST]

Shares in India's largest software services company, Tata Consultancy Services (TCS) slumped 4 per cent, after the company reported a mixed set of results. While revenues were tad lower than expectations, profit after tax reported by the company beat street expectations.

The shares were last down 4.24 per cent at Rs 2250, as margin too disappointed the street slightly.

TCS reported results after close of market hours on Thursday, wherein revenues came in at Rs 21,294 crore up 1.5 % Q-o-Q. The company reported a net profit of Rs
5,333 crore up 15.1 % Q-o-Q.

Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: "Strong international demand for our services and discipline in execution has helped TCS maintain its momentum and post robust growth in volumes as well as realisation. Our diversified market presence and services portfolio have helped us overcome seasonal weakness and soft demand in the Indian market."

Growth in Q3 was driven by industries like Life Science & Healthcare, Manufacturing, Media, Travel & Hospitality and Telecom. The company's broad based presence across markets and services helped overcome seasonal weakness in some markets. Europe led growth, driven by the continuous investments being made in that market, while North America and UK also grew during the quarter. Among growth markets, Latin America, APAC and MEA registered strong growth. India business suffered from volatility and declined sequentially. Among service lines, Business Process Services, Enterprise Solutions, Global Consulting were the leaders.

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