tata air india deal: TCS share price tanks nearly 7 percent, is tata-air india deal is the reason

Highlights

  • TCS quarterly results show profit
  • Despite this, shares of Tata Group’s largest company TCS fell 7 percent.
  • That being said, the quarter results are worse than expected
  • The question is whether the quarterly results are the reason for the decline or is it because of the Tata-Air India deal.

New Delhi
TCS Share Price Fall: It was announced on Friday last week that Tata Group has decided to buy Air India. Some people are considering it as good and some have called it bad. Meanwhile, on the very first day of the week, the shares of Tata Group’s largest company TCS saw a huge fall. The shares of TCS, the company with the second highest market valuation, fell up to 7 percent to reach the level of Rs 3660 (TCS Share Fall 7 percent). Now the question is arising that what is the reason for this decline? Although it is also being said that this happened due to poor results from expectations, but the company has made profit in the second quarter (TCS Q2 Result), then why the decline? Is it because of the decision to buy Air India (Tata buys Air India)?

First know what were the results in the second quarter
TCS’s quarterly results were out on Friday last week. The company has made a profit of Rs 9,624 crore in the second quarter of FY 2022. In the first quarter of the same year, the company had made a profit of Rs 9008 crore. At the same time, the company had a net profit of Rs 7,475 crore last year. TCS’s revenue grew 16.8 per cent year-on-year to Rs 46,867 crore. These results are being said to be worse than expected, but there is also an apprehension that the reason for the decline is not the quarterly results, but the decision to take over Air India.

Billions of dollars Tata Group will also take loan, know why 15000 crores is not being arranged to buy Air India!

Why is there a feeling that Air India has declined?
Talking about Air India, this company has been a loss maker for decades, not just a few years. It has a debt of about Rs 61,562 crore. Although the government has kept most of this debt with itself and Tata has taken only a loan of Rs 15,300 crore, but it is not easy to make people trust the company. The company’s investors are also worried about whether the company’s profits will fall in the coming years. If profits fall, it will directly affect the investors. Even though Tata’s name is enough, everything from the behavior of Air India employees to their experience of traveling with the airline has been bad. In such a situation, it is possible that the real reason for TCS’s decline is the decision to take over Air India.

Air India again in Tata’s bag, will it be able to return the lost prestige?