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|TCS stock closes lower post subdued Q1 earnings|
| BT Online |
Friday, July 14, 2017 | 15:40 IST
The TCS stock fell almost 2 per cent on Friday on Q1 earnings which remained below street expectations.
The Mumbai-based IT firm reported the biggest fall in its quarterly net profit in two years.
On Thursday, Tata Consultancy Services (TCS) registered a 10 per cent decline in its net profit to Rs 5,945 crore in the reporting quarter compared with Rs 6,608 crore in the last quarter.
The decline in profit comes when the Indian IT sector is battling protectionist regulations in most of the markets it outsources work to.
Analysts on average expected the company to post consolidated profit of Rs 6181 crore, according to Thomson Reuters data.
The board of directors has announced an interim dividend of Rs 7 per share for shareholders.The appreciation of the rupee resulted in a loss of Rs 650 crore in reported revenue, TCS added.
At 1112 hours, the TCS stock was trading 1.90 percent or 47 points lower at Rs 2,397 level on the BSE.
The stock closed 1.76 percent or 43 points lower at 2401 level.
Shares of the firm have underperformed the Sensex on a year to date basis. While the scrip is up around 1.13 per cent or 26 points, 30-share index has gained nearly 20 per cent or 5,324 points in the same period.
The stock has fallen almost 5 percent on an year-to-year basis.
On Thursday, the TCS stock closed 0.20 points or 4.95 percent higher at Rs 2444 level on the BSE. The earnings were announced after market hours.
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