TCS shares fall 4%; top 5 takeaways from second-quarter earnings

Shares of TCS slipped over 4 per cent on Bombay Stock Exchange (BSE) in trade on Wednesday after the IT firm missed forecasts in terms of revenue growth in the September quarter of financial year 2015-16.

The company reported a 3.9 per cent sequential revenue growth in the constant currency terms quarter-on-quarter, missing analysts' expectations and lagging behind rival Infosys, which reported six per cent sequential growth. Revenues grew 5.8 per cent q-o-q to Rs 27,165 crore, and 14.1 per cent on a year-on-year basis.

The stock of TCS ended the day 4.39 per cent down at Rs 2483.40 on BSE.

However, brokerage firm Angel Broking maintains BUY rating on the stock with a target price of Rs 3,168.

"We have delivered accelerated growth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in BFS, retail and lifesciences verticals with the UK and North America leading the markets," TCS CEO and MD N Chandrasekaran said.

TCS also announced a dividend of Rs 5.50 per share. Its operating margin for the quarter stood at 27.1 per cent.