New Delhi: The shares of Tata Consultancy Services (TCS), the largest company of Tata Group, witnessed a huge fall as prices of the share fell up to 7 percent to reach the level of Rs 3660 on Monday.
As of the 10:41 am, on Monday, TCS shares were trading 5.52 percent or Rs 217.35 lower at 3,717.95. On the National Stock Exchange (NSE) platform, the stock was 5.58 percent or Rs 219.75 down at Rs 3,715.90.
As per the results released on Friday, the company had posted a net profit of Rs 9,624 crore in the second quarter of FY2022. In the first quarter of the same year, the company earned a profit of Rs 9,008 crore. The company, meanwhile, posted a net profit of Rs 7,475 crore last year. The company's revenue grew 16.8 percent year-on-year to Rs 46,867 crore.
However, according to market experts these results are not that what was expected and decline is not because of the quarterly results, but the decision to take over Air India.
Air India which is in loss for decades and has a debt of about Rs 61,562 crore will be a difficult task to make people to trust on the company. However, the government has kept most of the debt with themselves and Tata has taken only a debt of Rs 15,300 crore.
The company's investors are also worried about the company's profits which might fall in the coming years. It will affect investors, if the profits fall. Thus, in such situation, experts are of the view that the reason of the decline of TCS share is because of Air India acquisition.
As of 12:26 PM, the TCS share price on BSE today is Rs 3,649.05.