Jan. 17 (Bloomberg) -- Tata Consultancy Services Ltd. fell the most in more than two years in Mumbai trading after India’s most valuable company reported sales that missed analyst estimates and some investors judged recent gains excessive.
Shares of the country’s largest software-services exporter declined 5.8 percent, the biggest drop since October 2011, to 2,213.05 rupees at the close. The stock has surged 62 percent in the past 12 months, compared with the 45 percent gain in the S&P BSE IT index.
Sales rose 33 percent to 212.9 billion rupees ($3.46 billion), the Mumbai-based company said yesterday. That lagged behind the 214.2 billion-rupee median of analysts’ estimates. Chief Executive Officer N. Chandrasekaran said he expects little growth for the company in India, where sales fell 9 percent, for the next two quarters.
“The results were slightly below expectations in one or two parameters,” said Mehraboon Irani, head of private client group at Nirmal Bang Securities Ltd. in Mumbai. “Some investors are booking profits because the gains have been big.”
Net income rose 50 percent to 53.1 billion rupees in the three months ended Dec. 31. That beat the 51.4 billion-rupee median of 46 analysts’ estimates compiled by Bloomberg.
“Based on initial discussions with our customers we believe 2014 will be a stronger year for us than 2013, as customers execute their business plans in a relatively stable environment,” Chandrasekaran said yesterday in a statement.
To contact the editor responsible for this story: Michael Tighe at email@example.com