TCS Profit Beat Fails To Excite Investors, Shares.

 Tata Consultancy Services shares came under selling pressure on Friday, despite India's biggest outsourcer reporting better-than-expected profit in the June quarter. TCS on Thursday posted a net profit of Rs 6,317 crore on sales of Rs 29,305 crore in the June quarter.

Though a number of brokerages retained their "bullish" outlook on TCS, domestic brokerage Kotak Securities downgraded TCS to "reduce", saying the composition in growth is worrying. TCS stock price leaves no upside from the current levels, it added.

Meanwhile, TCS management sounded cautious about the demand environment, which also weighed on the stock, traders said. According to the management commentary, the key banking, financial services and insurance (BFSI) vertical is likely to remain sluggish due to weakness in macro environment.

CLSA maintained its "outperform" rating on TCS, saying the company posted "in-line" revenues despite BFSI dampener.

Credit Suisse, which has an "outperform" rating on TCS, said the company was "light" on revenue, but better on margins. FY17 revenue growth is likely to be below 11 per cent, it added.

As of 09.32 a.m., TCS shares traded 0.7 per cent lower at Rs 2,503, underperforming the broader Nifty that was up 0.2 per cent.

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