TCS shares tank 4 pc on revenue growth concerns

MUMBAI, Dec 15:
Shares of Tata Consultancy Services (TCS) fell by 4 per cent today on worries that growth may be muted after the company said it expects revenue in December 2014 quarter to be ‘in-line with seasonal trends’.
TCS’s scrip tumbled 4 per cent to Rs 2,356.45 at the BSE.
On the NSE, it was down 3.9 per cent to Rs 2,355.10.
The bellwether stock was the worst performer among the 30-Sensex constituents.
The third quarter of the fiscal is traditionally weaker for IT firms as business is impacted by low volume growth amid Christmas and New Year holidays and furloughs in the US and Europe.
US and Europe are the key markets for the over USD 100 billion Indian outsourcing sector.
“Q3 revenue expected to be in-line with seasonal trends. Retail, Manufacturing and Hi-Tech likely to see impact of holidays and furloughs,” TCS had said in an investor presentation on Friday.
Selling in the stock was also seen after the company said it is undertaking a performance-based workforce restructuring.
TCS had on Friday said it is undertaking a performance-based workforce restructuring, but it is not a “retrenchment” exercise and the company may exceed its target of hiring 55,000 new professionals this fiscal. (PTI)
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