TCS Share Price Dips: Q4 Net Profit Decline Misses Expectations

Tata Consultancy Services Experiences Share Price Drop Amidst Earnings Concerns

In a recent turn of events, Tata Consultancy Services (TCS) has seen its share price fall by 1.11%, bringing it down to Rs 3,210.06, marking its lowest point since April 7. This decline follows disappointing earnings reports that have raised alarms among investors and analysts alike, leading several brokerages to revise their earnings per share (EPS) projections downward. The overarching concern stems from global economic uncertainties impacting demand.

Key Highlights from TCS Q4 Earnings

Revenue: TCS reported revenue of Rs 64,479 crore, a slight increase from Rs 63,973 crore, reflecting a growth of 0.79%.
EBIT: Earnings before interest and taxes (EBIT) dipped to Rs 15,601 crore, down 0.36% from the previous quarter’s Rs 15,657 crore.
Profit Margin: The company’s profit margin decreased to 24.19%, a drop of 27 basis points compared to the previous quarter’s 24.47%.
Net Profit: TCS’s net profit also saw a decline of 1.26%, falling to Rs 12,224 crore from Rs 12,380 crore.
Contract Value: In the March quarter, TCS secured a total contract value of $12.2 billion, with projections for FY25 reaching $39.4 billion.
Attrition Rate: The IT services attrition rate stood at 13.3% over the last year.
Dividend: TCS announced a final dividend of Rs 30 per share for the fiscal year ending in March 2025.

Current Market Performance

As of 9:22 a.m., TCS shares were trading at Rs 3,219.95, down by 0.90%, while the NSE Nifty 50 index experienced a 1.64% increase. Notably, TCS was the sole decliner within the NSE Nifty IT sector during early trading. Over the past year, the stock has plummeted by 19.37% and has seen a year-to-date decrease of 19.95%. The trading volume for TCS has notably surged, reaching 2.8 times its 30-day average. The relative strength index (RSI) currently stands at 24.18, indicating that the stock may be oversold.

Conclusion

The latest results from TCS have certainly raised eyebrows in the market, prompting a reevaluation of future earnings expectations. As global economic conditions remain shaky, investors are keen on monitoring how TCS will navigate these challenges in upcoming quarters. For further insights into market trends and TCS’s performance, stay connected with our updates.