IT chief Tata Consultancy Services (TCS) shares continued to have pressure and during Tuesday’s trading session it fell by 1 per cent to Rs 3,624.90 on BSE, which is an eight -month low. In the last two days, the price of information technology (IT) service company shares declined by 4 per cent due to the possibility of recession in the US economy. It is now trading around Rs 3,593.30, its 52 -week low of June 4, 2024.
On BSE, TCS has fallen by 19 per cent from its highest level of Rs 4,494 in the month of December. Last month, it fell poorly from the market with a decline of 11 per cent. In comparison, the BSE Sensex declined by 1 per cent and the BSE IT index recorded a softening of 6.7 per cent. TCS is one of the leading IT service providers with BFSI, communication, manufacturing, retail and high -tech presence.
Export -dependent industries (such as IT services, chemicals and automobile exports) are struggling with slow global economic growth, obstruction of supply chain and pricing. According to Motilal Oswal Financial Services, the speed of deals in the traditional carrier IT sector of growth is also weak and customers are showing vigilance in spending, while chemical export pressure is under pressure due to reduction in prices of global commodities and reduction in international demand.
TCS shares have declined by 16 per cent after the company’s results of the company’s December 2024 quarter since 13 January 2025. It then recorded a revenue of $ 7.54 billion, which was 1.7 percent less on a quarterly basis and 3.5 percent more on an annual basis. The company’s EBITa margin was 24.5 per cent, which is about 40 basis points higher on a quarterly basis.
During the quarter, when global currencies saw heavy fluctuations, the strong execution of TCS, cost management and skilled currency risk management helped improve margins and achieve free cash flow. The management said that disciplined investment in talent and infrastructure will give good support to long -term commercial progress.
After the third quarter income of FY 2025, analysts of KR Choksi Shares and Securities have revised the EPS estimate of FY 2026 to Rs 153.9 (earlier Rs 158.2), which reflects less improvement than expected in margin. The management target is 26.0-28.0 per cent of Ebita Margin. But the brokerage firm said that it expects a gradual improvement, which is likely to expand meaningful margin by FY 2027. Analysts said that it would move beyond strong deal and better discretionary expenses.
First Published – February 26, 2025 | 11:21 PM IST
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