The IT major sees a drop in its share price in early trade despite posting strong Q4 numbers.
Shares of IT major TCS fell by over 2% despite the company reporting a higher-than-expected 73% growth in its March quarter net profit. The stock, which opened on a positive note, failed to hold on to the momentum and lost 2.16% to Rs 2,467.70 on the BSE.
On the National Stock Exchange (NSE), it went down 2.12% to Rs 2,466.10.
"TCS Q4 2015-16 revenues were largely in line with estimates while margins were below expectations," said Govind Agarwal, Research Analyst-Institutional Equities Prabhudas Lilladher.
The country's largest IT exporter, TCS, on Monday reported a higher-than-expected 72.7% growth in March quarter net profit at Rs 6,413 crore and guided towards a stronger 2016-17, saying a majority of its worries are behind now.
The Tata group company had posted a post-tax profit of Rs 3,713 crore in the year-ago period, pulled down by a Rs 2,628 crore employee bonus.
"We believe that all these (difficult) markets are better than the curve we had in the earlier quarter. I think 2016-17 should be a good year... we can tell you that it would be a strong year," Managing Director and Chief Executive N Chandrasekaran had said.
Industry body Nasscom expects software exports to grow at a slower clip of 10-12% in 2016-17.
For 2015-16, its bottom line grew 22.4% to Rs 24,292 crore while the top line jumped 14.8% to Rs 1.08 trillion, crossing the trillion-rupee mark for the first time.
During the reporting quarter, TCS posted a 17.5% rise in revenue to Rs 28,449 crore under the I-Gaap accounting, while on a sequential basis, it was up at a milder 4%.
At 1123 hours, the Tata Consultancy Services stock was trading at Rs 2477.00, down Rs 45.20 or 1.79% on BSE.
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