NEW DELHI: Shares of Tata Consultancy Services declined over 4 per cent on Tuesday as the company's March quarter earnings failed to cheer investors.
The stock tumbled 5.14 per cent to Rs 3,074.55 during the day on the BSE.
Later, it closed at Rs 3,105, lower by 4.21 per cent.
On the NSE, it dipped 3.89 per cent to close at Rs 3,120.
"We believe despite today's heavy profit-booking in IT space, IT stocks are expected to rebound in ensuing days," said Binod Modi, Head Strategy at Reliance Securities.
In traded volume terms, 2.48 lakh shares were traded at the BSE and over 86.54 lakh units at the NSE during the day.
The company's market valuation also tumbled from Rs 50,473.55 crore to Rs 11,48,555.45 crore on the BSE.
The country's largest tech exporter TCS on Monday reported a 14.9 per cent jump in its consolidated net profit for the March quarter to Rs 9,246 crore on higher profit margins and revenue growth.
It posted a marginal increase in reported post-tax profit at Rs 32,430 crore for the financial year 2021, despite a 4.6 per cent jump in revenue to Rs 1.64 lakh crore in the last fiscal.
The company, a cash-cow for the over USD 100 billion Tata Group, said it is optimistic from a demand perspective and is targeting to grow the top line in double-digits in the next few years.
TCS chief executive and managing director Rajesh Gopinathan on an analyst call said that the financial year 2022 will be an "aberration" from a revenue growth perspective, hinting at the low base throwing up a higher growth number.
Its overall revenues in the fourth quarter of the financial year 2021 stood at Rs 43,705 crore, 9.4 per cent higher when compared to the year-ago quarter's 39,946 crore, and the operating profit margin widened by 0.2 per cent to 26.8 per cent.
"The benchmark indices opened marginally in the green and traded volatile in the first half amid profit-taking in the IT majors post TCS results," Ajit Mishra, VP - Research, Religare Broking Ltd said.
Other IT companies also closed lower, with MindTree falling 4.41 per cent, Tech Mahindra 3.54 per cent, Wipro 3.20 per cent and Infosys 1.91 per cent.
The BSE Information Technology index closed 2.63 per cent lower.