TCS falls 4% on disappointing Q2 results, stock hits over 7-month low

Shares of Tata Consultancy Services (TCS) hit an over seven-month low of Rs 1,929, down 4 per cent on the BSE in early morning trade on Friday after the IT major on Thursday reported weaker-than-expected numbers for the quarter ended September 30 (Q2FY20). The stock was trading at its lowest level since February 25, 2019.

TCS reported 1.6 per cent sequential revenue growth in constant currency (CC) terms was the lowest in the past two years. It posted 1 per cent decline in the net profit at Rs 8,042 crore on sequential basis. Analysts on an average had expected net profit of Rs 8,255 crore for the quarter.

The company’s revenue and profitability were adversely affected largely owing to softness in financial services and retail verticals.