TCS shares fall nearly 3% after earnings announcement

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TCS shares fall nearly 3% after earnings announcement
TCS shares fell on Tuesday after the company announced its Q3 FY23 resultsBCCL
Shares of TCS declined nearly 3 per cent in initial trade on Tuesday after the company's December quarter results failed to cheer investors. The stock fell 2.67 per cent to Rs 3,231 apiece on the BSE.
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At the NSE, it declined 2.70 per cent to Rs 3,230.10 apiece.

It was the biggest laggard among the Sensex and Nifty components.

The 30-share BSE Sensex quoted 437 points or 0.72 per cent lower at 60,310.31 in morning trade.

"TCS has given a muted quarter where despite the growth in revenue from operations, the same is not reflected in the profitability. The last quarter of the fiscal remains a key watch out as the macro-economic environment changes will bring clarity across economies," said Urmi Shah, Analyst, Samco Securities.

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India's largest IT services company, TCS, reported an 11 per cent rise in December quarter net profit to Rs 10,846 crore, restricted by a narrowing of profit margins, but sounded sanguine about the deal pipeline.

Its overall revenue rose 19.1 per cent to Rs 58,229 crore for the reporting quarter, but it was a 0.5 per cent narrowing of the operating profit margin to 24.5 per cent that limited the overall profit growth.

"TCS delivered better-than-expected revenue growth in Q3, while margins came a tad below our expectations," according to a report by Emkay Global Financial Services.

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