TCS Shares Slide 4% As Markets Disappointed With Q2 Numbers

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India's largest Software Services Company, Tata Consultancy Services (TCS) saw its share price fall a huge 4.00 per cent after analysts downgraded the stock following Q2 numbers that lagged estimates.

The company reported a net profit of Rs 6055 crores for the quarter ending June 30, 2015, which was in line with what the street was estimating.

TCS Shares Slide 4% As Markets Disappointed With Q2 Numbers
However, the dollar revenue, which was placed at $4156 million, was below estimates. Volume growth was also tepid at 4.9 per cent quarter on quarter. The attrition rate at the company was also very high.

Analysts are now comparing the superb set of results of Infosys with TCS and believe that premium valuations thus far accorded to TCS, may reduce. Thus the valuation gap and the premium that TCS enjoyed may fast vanish.

Infosys reported a good set of quarterly numbers for June 2015 with revenues and margins, both beating street estimates.

The only worry now for both the companies will be the Q3 numbers, which tend to be weaker than other quarters. HCL Tech has already sounded a warning on revenue front and the numbers of the company are yet awaited.

TCS shares were last trading at Rs 2490, down 4 per cent over Tuesday's close.

Read more about: tcs, infosys
Story first published: Wednesday, October 14, 2015, 10:04 [IST]
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