New Delhi: Shares of Tata Consultancy Providers (TCS) on Wednesday declined over 1 per cent after S&P World Rankings stated the corporate is more likely to face slower progress in income and profitability over the subsequent 12-18 months, given subdued international IT spending.
The inventory dipped 1.12 to Rs 2,217.05 on the BSE.
On the NSE, it fell 1.16 per cent to Rs 2,216.45. “We’re revising our outlook on TCS to secure from constructive. On the similar time, we affirmed our ‘A’ long-term issuer credit standing on the corporate,” S&P World Rankings stated in an announcement on Tuesday.
It added that the secure outlook displays its view that TCS will preserve its good aggressive place, strong money holdings, and powerful working money flows over the subsequent 12-24 months.
The Mumbai-based IT main’s strong money place and prudent monetary insurance policies will proceed to help its monetary place, it stated.
S&P World Rankings estimated that international IT spending will contract by 4 per cent in 2020, in keeping with its expectation of a 3.8 per cent decline in international GDP due to the COVID-19 pandemic.
“We now anticipate TCS’ income to rise 0-1 per cent within the fiscal yr ending March 31, 2021, in contrast with progress of 5.3 per cent in fiscal 2020,” it added.
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