TCS shares decline over 1% after earnings announcement

Shares of TCS ended over 1 per cent lower on Tuesday after the company's December quarter results failed to cheer investors.

The stock dipped 1.01 per cent to settle at Rs 3,286.20 apiece on the BSE. During the day, it fell 2.67 per cent to Rs 3,231.

On the NSE, it went lower by 1.11 per cent to end at Rs 3,283 per share.

The company's market valuation fell by Rs 12,257.54 crore to Rs 12,02,437.46 crore on the BSE.

In the broader market, the 30-share BSE Sensex ended 631.83 points or 1.04 per cent lower at 60,115.48.

"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," Urmi Shah, Analyst at Samco Securities, said.

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.