TCS shares gain on earnings; Infosys extends falls

MUMBAI: Shares of Tata Consultancy Services were up 2.3 per cent on Friday after its quarterly profit exceeded forecasts, while Infosys fell after cutting its sales guidance by more than expected.

It reported a net profit of Rs 3,318 crore, up 13.14 per cent, against Rs 2932.40 crore last quarter. The ET Now poll had expected the net profit to be at Rs 3227.19 cr. Revenues for the June quarter were at Rs 14,870 cr as against Rs 13,295 cr QoQ.

According to dealers, investors are likely to churn their portfolios and give more weightage to TCS than Infosys after the latter missed its guidance. At the same time, the TCS management expects the stable performance to continue despite the delays/uncertainties in the current environment.

“TCS has been able to limit volatility in financials. We believe TCS has demonstrated that it is possible to deliver a stable performance even in the most uncertain times. It appears that if backed by strong management execution, sharp volatility in revenue growth and margins can be avoided for large, stable IT companies on either side,” Morgan Stanley said in a note.

At 09:35 am, TCS was at Rs 1,264.05, up 2.26 per cent, on the BSE. It touched a high of Rs 1,285 and a low of Rs 1,261.05 in trade today.

Shares of Infosys continued to remain subdued after a sharp fall in the previous session. The stock was at Rs 2,250, down 0.67 per cent, on the BSE. It has touched a high of Rs 2,254 and a low of Rs 2221.65 today.
Although it does not make official forecasts, TCS said it expects to beat the industry export revenue growth forecast of 11-14 percent for this fiscal year set by trade body Nasscom.