Business
TCS CEO & MD, N Chandrasekaran, however, gave a robust commentary on the outlook of the company in the current fiscal.
Updated : Mar 19, 2018, 06:52 AM IST
Shares of Tata Consultancy Services (TCS) dropped 3.52% during opening trade on the Bombay Stock Exchange (BSE) as the company announced below expectations fourth quarter results on April 16.
The share price on the BSE was trading at 2489.70, down Rs 95.5 at 9.41 am. On the National Stock Exchange's (NSE) Nifty, the story was similar. TCS shares were down 3.62%, at Rs 2489.25 per share.
IIFL, in a note said that TCS' revenue growth of 1.6% was below their consensus estimate of 2.3%.
Prabhudas Lilladher (PL), in a report dated April 16, 2015 said that TCS results were a 'mixed bag'. Shashi Bhushan and Hussain Kagzi of PL said, "TCS missed expectations in five out of last six quarters. The weakness was attributed to disappointment in Telecom, Insurance and Energy."
TCS CEO & MD, N Chandrasekaran, however, gave a robust commentary on the outlook of the company in the current fiscal.
IIFL said, "Due to lower revenue in fourth quarter and weaker medium term margins, we have cut our FY16/17 earning per share by 2%. We believe TCS will witness a Profit After Tax (PAT) Compounded Annual Growth Rate (CAGR) of less than 13% over FY15-18ii."
PL said, "Management reiterated their view on healthy overall demand environment with positive bias for IT budget for their clients along with healthy deal pipeline. Moreover, Management expects return of discretionary spend for all verticals except three weak verticals, with acceleration in revenue momentum in BFS."