Shares of Tata Consultancy Services fell by almost 4% on Friday after the company flagged issues about the H1-B visas in the US as a key headwind going forward.
The stock which opened the day on a positive note came under selling pressure as the trading session progressed and fell by 3.91% to Rs 2,251.60 on BSE.
On NSE, shares of the company dropped 3.98% to Rs 2,251.
The stock was the worst hit among the bluechips on both the key indices -- Sensex and Nifty -- during the morning trade.
“While TCS posted in-line growth and margin, we remain concerned as growth was driven by volatile markets, which entail the potential of springing a negative surprise going forward,” Edelweiss Securities said in a note.
“We believe that Mr Chandra’s departure from TCS would be a negative. Mr Chandra has led in transformation of the company into a growth and margin leader in the sector,” brokerage Prabhudas Lilladher said in a note.
TCS, the largest software exporter, on Thursday reported a street-beating 10.9% rise in December quarter net profit at Rs 6,778 crore, helped by growth in digital and traditional financial sectors although it flagged issues about the H1-B visas in the US.
The Tata Group’s crown jewel had reported a net profit of Rs 6,110 crore under the Ind-AS accounting system for the corresponding period last fiscal.
Revenue rose to Rs 29,735 crore, up 8.7% over the year-ago period and 1.5% from the preceding September quarter. The net profit growth is up 2.9% on a sequential basis.
The results came on Friday when its chief N Chandrasekaran was made chairman of the group holding company Tata Sons. He will be succeeded by Rajesh Gopinathan as the TCS CEO.