TCS share price fell as much as 2.19 per cent in the early trade on Monday after the IT major on Friday said due to floods in Chennai it may face ‘material impact’ which in turn will affect the current quarter revenues.
TCS share price fell as much as 2.19 per cent in the early trade on Monday after the IT major on Friday (post market hours) said due to floods in Chennai the company may face ‘material impact’ which in turn will affect the current quarter revenues.
Chennai is one of the company’s largest delivery locations, with over 65,000 employees. In a release, the company said, “Other than mission critical activities, the normal business functioning of our facilities in the city had to be halted all week since December 1 due to extreme weather conditions and subsequent flooding.”
At 9.54 am, shares of Tata Consultancy Services (TCS) were down 1.16 per cent at Rs 2,359.60. The scrip opened at Rs 2344.90 and had touched a high and low of Rs 2,364.70 and Rs 2,335, respectively, in trade so far. Sensex was down 86.23 points, or 0.34 per cent, at 24958.20.
The October-December quarter is usually a weak quarter for the Indian IT players. The Mumbai-based firm said a majority of facilities in Chennai, where the company has over 65,000 employees, have opened for normal business from December 7 but attendance remains lower than normal.
On Chennai floods, TCS in a release said, “This is expected to have a material impact on the company’s revenue in the seasonally weak third quarter ending December 31, 2015.”
In the past one year, TCS share price slid 4.22 per cent to Rs 2387.25 on December 11. BSE Sensex slid 9.26 per cent during the same period.
For the quarter ended September 2015, TCS posted a consolidated net profit of Rs 6084.66 crore, up 16.02 per cent, against Rs 5244.28 crore in the corresponding quarter a year. The IT major registered 7.05 per cent jump in net profit on quarter-on-quarter basis.
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