TCS slumps on Q3 anxiety
TCS updated the stock exchanges on Friday, after market closure, about the material impact on account of the Chennai floods and the stock price is reacting accordingly to this news.
The company’s facility in Chennai employs over 65,000 and it is one of the largest delivery locations. Due to the floods, its offices were closed for one week, starting 1st Dec. Though the offices reopened on 7th Dec, attendance continued to remain a trickle. Though things have normalized now, the company has categorically stated that this could have a material impact on the company’s revenues in Q3. Seasonally too, third quarter is always the weakest. Thus one cannot expect any firework performance in current Q3; it would be a relief if it is able to maintain its Q2 margins.
The stock price is down in the red today; down intra day to Rs.2335, a decline of over 2%. On 7th Dec, the stock had hit a new 52-week low at Rs.2316.65.