Indian IT services companies such as TCS, Wipro and Infosys, which offer a range of services to clients in the banking, retail and other sectors by helping them run their business processes, have continued winning contracts and expanding over the past few months.
March-quarter profit came in at 92.46 billion rupees ($1.23 billion) for TCS, the country's biggest software services exporter, but closely missed analysts' expectations for 93.63 billion rupees, according to Refinitiv data.
"Expectations were built into the (share) prices before the announcements. This is most likely regular profit-taking, as investors want to book profits now and re-enter the stock when it is lower," said Anita Gandhi, director at Arihant Capital Markets.
TCS shares, which had a run-up of about 8% in the last two weeks, closed 2.3% lower on Monday ahead of results after market hours.
The Nifty IT index fell 2.2% on Tuesday, mainly dragged down by TCS shares. Smaller peers Infosys and Wipro will report their results later in the week.
TCS said revenue from its banking, financial services and insurance business rose 15.5%, the most among its units. The business was also the biggest contributor to the company's consolidated revenue, which jumped 9.4%.
The Mumbai-based company declared a final dividend of 15 rupees per share, compared with 6 rupees per share a year earlier.
TCS appointed Samir Seksaria as its chief financial officer, replacing Ramakrishnan V who is set to retire later this month.
($1 = 75.2930 Indian rupees)
(Reporting by Soumyajit Saha and Nallur Sethuraman in Bengaluru; Editing by Aditya Soni and Subhranshu Sahu)
By Soumyajit Saha and Sethuraman N R