TCS falls on weak Q4 guidance - The New Indian Express

TCS falls on weak Q4 guidance

Published: 19th March 2014 10:19 AM

Last Updated: 19th March 2014 10:19 AM

Tata Consultancy Services (TCS) shares fell on Wednesday after analysts said the company has indicated revenue growth for the quarter ending in March could be weaker than the previous quarter.

The company has hosted an analyst briefing with Rajesh Gopinathan, CFO of the company. The management indicated that overall demand remains good and in line with its expectations, with 1HFY15 growing faster than 2HFY15.

''This is expected to be led by the likely return of discretionary spending, increased penetration in Europe and that the company has not seen any ramp downs or cancelations in projects in recent weeks.''

TCS expects EBIT margins to decline by nearly 40-50bp qoq largely due to ongoing investments to enter newer geographies and services lines. The company maintained that margins may stabilize in the 27%-28% band in the long term.

Shares of the company are trading at Rs 2,018.70, down Rs 103.85, or 4.89% at the Bombay Stock Exchange (BSE) on Wednesday at 9:40 a.m.The scrip has touched an intra-day high of Rs 2,078.00 and low of Rs 2,015.00. The total volume of shares traded at the BSE is 91,214.In the earlier session, the shares fell 0.87%, or Rs 18.6, at Rs 2,122.55.Currently, the stock is trading down 15.33% from its 52-week high of Rs 2,384.20 and above 48% over the 52-week low of Rs 1,364.00.

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