TCS Stock Slumps Despite Profit Rise: Investors Unimpressed

Despite a nearly 5% increase in net profit for the September quarter, shares of Tata Consultancy Services (TCS) dropped by around 2%. Investors were not impressed due to narrowing profit margins. The company's revenues rose by over 7%, with the board also declaring a second interim dividend.

Shares of Tata Consultancy Services (TCS) fell by approximately 2% on Friday following an underwhelming investor response to its latest quarterly earnings report. The stock closed at Rs 4,146 on the NSE, dropping by 1.93%, and ended at Rs 4,150.60 on the BSE, down 1.84%.

With 57.59 lakh shares traded on the NSE and 2.86 lakh on the BSE, TCS emerged as the biggest loser among BSE Sensex and NSE Nifty firms for the day. The Sensex fell 230.05 points to close at 81,381.36, while the Nifty slipped 34.20 points, settling at 24,964.25.

Despite a 4.99% rise in net profit, reaching Rs 11,909 crore for the September quarter, TCS's gains were overshadowed by a narrowing profit margin. The company's revenue climbed 7.06% to Rs 64,988 crore. The board also announced a second interim dividend of Rs 10 per equity share, though these developments did little to uplift the market sentiment.

(With inputs from agencies.)