By Aditya Raghunath
Investing.com -- India’s largest IT services company, Tata Consultancy Services Ltd. (NS:TCS) reported its numbers for Q4 FY2021, and its consolidated profit rose 6.3% to Rs 9,246 crore on a sequential basis.
Consolidated revenue grew 4% to Rs 43,705 crore on the back of large deals, a weak rupee, and recovery in demand. “The investments over the last decade in building newer capabilities, and in research and innovation, position us well for the multi-year technology services opportunity ahead. While we continue to dominate in our traditional areas of strength, we are making good progress in gaining share in the growth and transformation opportunity,” Rajesh Gopinathan, Chief Executive Officer and Managing Director said.
However, these numbers might not translate into higher share prices according to analysts. Higher growth is expected at TCS considering its high valuations. Brokerage firm JM Financial (NS:JMSH) believes that the stock price might fall today. In a post-results note to clients, it said, “The results might be a tad disappointing given the strong run-up in the stock ahead of results and will limit any material raise in FY22/23 EPS estimates. We would expect a mildly negative reaction to the results in a trade tomorrow on a prima facie basis.”
TCS stock closed at Rs 3,250, down 2.17% on April 12, a much lower fall than the broader markets that fell over 3.4%.