TCS shares drop 4 per cent after Q2 results

New Delhi: Shares of Tata Consultancy Services (TCS) on Friday fell by 4 per cent after the company's September quarter earnings failed to meet market expectations.

The scrip declined 3.76 per cent to Rs 1,929 on the BSE.

On the NSE, it dropped 3.96 per cent to Rs 1,925.

"TCS reported muted Q2 FY20 numbers, with 0.6 per cent quarter-on-quarter (QoQ) dollar revenue growth missing street's 2.1 per cent estimate and operating margin falling QoQ to 24 per cent 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 per cent 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 per cent 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.