TCS hits 4-month low

MUMBAI, Dec 15 (Business Standard): Shares in Tata Consultancy Services (TCS) has dipped nearly 4 per cent to Rs 2,355, its lowest level since July 21, 2014 on NSE, the company in an investor update has communicated for a weak revenue growth for the December quarter, arising from seasonality and pressure in its banking, financial services and insurance (BFSI) business.

TCS expects its revenue for the financial year's third quarter ending December 31 (3QFY15) to be in line with seasonal trends. Traditionally, the third and fourth quarters are weak for information technology companies in terms of growth, due to holidays and furloughs.

It said growth in Europe revenues would be better than the company's average, though UK was expected to be weak.

On the impact of currency, the company is expecting a slight uptick in realizations and a 10-20 basis points positive impact due to dollar strengthening. However, it expects a negative 220 basis point impact due to cross currency headwinds.