Shares of IT bellwether Tata Consultancy Services (TCS) today slumped nearly 6 per cent, wiping-out Rs 22,808 crore from its market value, after reporting 3 per cent sequential revenue growth in dollar terms for the quarter ended December that missed the market estimates.
After falling 6 per cent to Rs 2,210.05 in intra-day trade at the BSE, TCS shares finally ended at Rs 2,215.65, down 5.77 per cent on the BSE.
At the NSE, the stock tanked 5.55 per cent to settle at Rs 2,219.85.
Following the dip in the stock, the market value of the company fell by Rs 22,808 crore to Rs 4,33,985 crore.
The heavy-weight stock was the worst performer among the blue-chips on both Sensex and Nifty.
TCS was the biggest drag on the Sensex and was significant in sending the benchmark Sensex down by 201.56 points or 0.95 per cent to 21,063.62.
"TCS was down by over 5 per cent post its Q3 results, as despite good results, its margins were lower QoQ basis," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
According to Ankita Somani, Research Analyst IT, Angel Broking: "TCS reported its Q3 FY14 results with revenues as operating margin coming in a bit lower-than-expectations while net profit stood higher than estimates on account of healthy forex gains."
TCS yesterday posted a 50.3 per cent jump in December quarter net profit at Rs 5,333 crore, aided by all-round business growth and a one-time forex gain, and sounded confident of a stronger performance next fiscal.
It had reported a consolidated net profit of Rs 3,550 crore in the third quarter a year ago.
TCS logged a 32.5 per cent rise in October-December 2013 period revenues at Rs 21,294 crore on the back of good traction in life sciences and manufacturing sectors, among others, even as improved business in Europe boosted growth.
In US dollar terms, TCS' net profit rose by 31.7 per cent to USD 858 million in reporting quarter against USD 652 million in the same period of previous fiscal.
Revenues were up by 17 per cent to USD 3.44 billion against USD 2.95 billion during the same period a year ago.
Sequentially in dollar terms, net profit rose by 14.7 per cent while revenues were up by 3 per cent.