TCS' stock price down by ~2%

13 Apr 2023 , 11:11 AM

Shares of Tata Consultancy Services Limited are trading about 2% lower in Thursday’s early morning session as the company announced its results for the quarter ended March 31, 2023. The company has missed the street estimates.

TCS has reported a 14% y-o-y jump in its Net Profit at Rs 11,392 crore in Q4 as compared to a profit of Rs 10,846 crore in the previous corresponding quarter.

The company’s revenue growth met street expectations, but net profit was below estimates. Whereas quarterly growth remained short on both parameters.

Market analysts predicted that the Tata Group enterprise would showcase a 2.1% quarter-on-quarter (QoQ) revenue growth and a 6.2% QoQ surge in net profit during the January-March quarter.

The company’s consolidated revenue from operations for the quarter ended March 31, 2023, amounted to Rs 59,162 crore, indicating a notable 16.9% increase from Rs 50,591 crore recorded in the corresponding quarter of the previous year. The company’s consolidated revenue from operations in the December quarter of FY23 stood at Rs 58,229 crore.

The company’s earnings before interest and taxes (EBIT) totaled Rs 14,488 crore, with a yoy contraction of 0.5% in EBIT margin, which stood at 24.5%. Meanwhile, the net margin was recorded at 19.3%.

For the quarter under review, the company’s order book stood at $10 billion, while the total contract value (TCV) of the order book for FY23 amounted to $34 billion.

At around 11.10 AM, TCS was trading 1.79% lower at Rs 3,183.90 per piece, against the previous close of Rs 3,241.65 on NSE.

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