Shares of the country's largest software services company - Tata Consultancy Servicess (TCS) - fell as much as 4.51 per cent to hit an intraday low of Rs 3,100 a day after it posted March qaurter and financial year 2020-21 earnings. TCS recorded a 14.6 per cent jump in its net profit for the fourth quarter of 2020-21, which stood at Rs 9,282 crore, over the fourth quarter net profit of Rs 8,093 crore of the corresponding period. The stock price correction came on account of higher earnings estimates, analysts said.
The company said in its statement that its revenue grew 9.4 per cent to Rs 43,705 crore from Rs 39,946 crore in the corresponding period last fiscal.
The company mainly benefited from increased demand for its cloud service during the prevailing Coronavirus crisis.
During the quarter company won new orders worth $9.2 billion which was highest ever Total Contract Value (TCV) in a quarter, TCS said in a press release.
The company said that the board has recommended a final dividend of Rs15 per equity share. The company said its net addition is at 19,388 employees, highest ever in a quarter.
As of 10:15 am, TCS shares were trading 3.37 per cent lower at Rs 3,137, underperforming the Nifty which was down up nearly 1 per cent.