TCS shares fall 2 per cent after Q3 revenue lags estimates

Tata Consultancy Services (TCS) shares fell by 2 per cent on Friday after the IT services major reported flat sequential US dollar revenue growth for the December quarter compared with some analysts estimates of 0.5 per cent.

TCS' quarterly net profit grew by 5.1 per cent and the software services provider said it expected strong outsourcing deals momentum to boost growth in the quarters ahead.

Premium valuations were also seen weighing on the stock, with shares of TCS, the country's biggest software services exporter, trading at 20.6 times of its one-year forward earnings compared with 17.3 times for rivals, Thomson Reuters data showed.

The scrip was trading at Rs 2504.90 a piece, down 40.10 points (or 1.58 per cent), on the Bombay Stock Exchange (BSE) at 11:40 am.

Similarly, on the National Stock Exchange (NSE) TCS shares was trading 35.80 points (or 1.41 per cent) lower, at Rs 2,503.30 per scrip in late morning trade.

(Reuters)