TCS shares drop 4% after Q2 results failed to meet market expectations; most brokerages cut their price targets for stock

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. Most brokerages cutting their price targets for the stock, a report in CNBC-TV18 said.

#CNBCTV18Market | IT stocks slip in trade led by TCS after Q2 results; Infosys holds on to gains ahead of Q2 earnings today. Also, look out for a strengthening #rupee pic.twitter.com/0t7li5QuqH

— CNBC-TV18 (@CNBCTV18Live) October 11, 2019

“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, according to a PTI report. [caption id=“attachment_4748931” align=“alignleft” width=“380”]  Representational image. Reuters.[/caption] 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 30 September 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. --With PTI inputs