TCS logo.
Credit: Reuters File Photo
New Delhi: Shares of Tata Consultancy Services (TCS) on Monday gave up all early gains and ended 1.51 percent lower amid profit-taking at the counter in-line with weak trends in the broader market.
During early trade, the stock climbed over 1.50 percent after the IT services major reported a 9 percent growth in net profit at Rs 12,434 crore in the January-March quarter due to strong domestic business, even as the company struggled in its key markets overseas.
The stock gained 1.56 percent to Rs 4,063 during the morning trade on the BSE. However, later it lost the winning momentum and declined 1.47 per cent to settle at Rs 3,941.30. During the day, it lost 2 per cent to Rs 3,920.
On the NSE, shares of the company climbed 1.56 per cent to Rs 4,064.20 in early deals. However, it failed to carry forward the positive momentum and dipped 1.51 per cent to settle at Rs 3,940.80.
The company's earnings were announced after market hours on Friday.
The 30-share BSE Sensex tanked 845.12 points, or 1.14 per cent, to settle at 73,399.78. The NSE Nifty declined 246.90 points, or 1.10 per cent, to finish at 22,272.50.
In the entire fiscal year, the Tata Group company's net profit surged 9 percent to Rs 45,908 crore, while the revenue went up to Rs 2,40,893 crore from Rs 2,25,458 crore a year ago.
North America, the biggest market by geography, reported a 2.3 percent dip in revenues, while continental Europe, the third biggest, witnessed a 2 per cent decline in the January-March period.
However, its domestic business, which saw nearly 38 per cent growth in revenues, helped the company post a 3.5 percent growth in revenues to Rs 61,237 crore during the quarter.
TCS Chief Executive and Managing Director K Krithivasan told reporters that uncertainties are hampering growth in North America and the largest sector of banking, financial services, and insurance, but exuded confidence that things are bottoming out and growth should return.
"It is difficult to say when growth will return... but FY25 will be better than FY24," Krithivasan said, adding that though he is not disappointed with the performance, an additional growth of up to 1 percentage point would have made him happier.