Shares of India’s largest IT firm TCS slumped in trade on Friday morning, after the firm reported a Q3 results, missing street estimates. TCS share price slumped by more than 2.5% to hit the day’s low at Rs 1,840.10 on BSE. Yesterday, the IT behemoth reported a 24.1% on-year increase in net profit to Rs 8,105 crore, in the Oct-Dec quarter. Notably, the IT behemoth is the first to report quarterly results in this quarter from the information technology pack. The net profit implies a minor miss as compared to CNBC TV18 poll of Rs 8,194 crore. The total revenues came in 20.8% higher at Rs 37,338 crore, on the back of robust BFSI and digital revenue growth.
Taking stock of the reported results in the latest quarter, Citi said that its concern for the profitable growth for the sector and the firm remains. Infosys earnings, scheduled to be announced later today, is another key event for the sector. The brokerage firm has retained a cautious stance on the sector. Citi has a sell rating on the stock with a target price of Rs 1,785. Morgan Stanley noted that there has been a small beat on the revenues, more by offset miss on margins. The brokerage firm has a target share price of Rs 2,260 on the shares, implying an upside of more than nearly 23% from current prices.
Taking stock of the reported results, Rajesh Gopinathan, MD & CEO of TCS said, “We are wrapping up 2018 with a strong revenue growth of 12.1% in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies. The strong client metrics, industry leading growth in digital services, a very strong order book and deal pipeline are all validations that customers recognize our differentiated capabilities and are picking us for their growth and transformation programs.”
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