TCS joins Infosys in projecting muted Q4 growth; stock tanks 4%

Stocks

oi-Sunil

By Sunil Fernandes

Published: Wednesday, March 19, 2014, 10:47 [IST]

Close on the heels of Infosys, TCS has now said that its Q4 growth would be muted and in fact lower than its Q3 growth.

The stock, which is a heavyweight on the bourses, tanked 4 per cent, pulling benchmark indices lower.

A Reuters report said, "At its quarterly analyst briefing, TCS highlighted that revenue growth in 4QFY14 could be weaker than 3QFY14. We are disappointed by the muted outlook for the quarter and expect constant currency revenue growth of around 2 percent, down from our 3 percent estimate earlier," said Kotak Institutional Equities in a report dated on Tuesday.

Shares in TCS were last trading at Rs 2030, down 4.31 per cent over Tuesday's close.

Earlier last week Infosys stunned markets by painting a far from rosy picture. "At the beginning of the quarter (Q4) we gave guidance for FY 2014. Several factors may result in our revenues to be near the lower end of guidance," Infosys CEO S D Shibulal said at a Barclays investor meet.

"At the broad level some of our clients have seen slowdown in their business, these are across various verticals leading to unanticipated project ramp downs and cancellations in Q4.

"Many of the factors that have led to the recent slowdown will continue to impact client spending at least in the initial part of fiscal year 2015," he said.

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