TCS shares drop 4 pc after Q2 results

Shares of Tata Consultancy Services (TCS) on Friday fell by 4 percent after the company's September quarter earnings failed to meet market expectations. The scrip declined 3.76 percent to Rs 1,929 on the BSE.

On the NSE, it dropped 3.96 percent to Rs 1,925. "TCS reported muted Q2 FY20 numbers, with 0.6 percent quarter-on-quarter (QoQ) dollar revenue growth missing street's 2.1 percent estimate and operating margin falling QoQ to 24 percent in a seasonally strong quarter," according to a report by Edelweiss Research.

The country's largest software exporter on Thursday reported a tepid growth in net income for the September quarter at Rs 8,042 crore and guided towards more challenges putting a big question mark over its ability to deliver the double-digit growth. TCS posted a 1.8 percent rise in consolidated net profit at Rs 8,042 crore for the quarter ended September 30, 2019.

It had posted a net profit of Rs 7,901 crore in the year-ago period, TCS said in a BSE filing. Revenue of the Mumbai-based firm grew 5.8 percent to Rs 38,977 crore in the July-September quarter compared with Rs 36,854 crore in the same quarter of the previous fiscal, it added.