Shares of Tata Consultancy Services (TCS) on Tuesday fell by more than 1 per cent in morning trade, a day after announcing its September quarter earnings.
The results were announced post market hours on Monday.
The stock of the IT services exporter declined 1.15 per cent to Rs 3,085.25 on the BSE.
At the NSE, it fell 1.04 per cent to Rs 3,086.
The 30-share BSE benchmark was trading 347.3 points lower at 57,643.81.
TCS on Monday reported an 8.4 per cent growth in its September quarter net profit at Rs 10,431 crore, crimped by a dent on margins.
The Tata group company, however, said the operating environment is “challenging” and warrants “vigilance”, even though the headwinds posed by factors like recession in its biggest market US, rising inflation around the world and currency volatilities are yet to materialise into its order pipeline.
The reporting quarter saw an 18 per cent jump in revenue to Rs 55,309 crore as against Rs 46,867 crore in the year-ago period, but it was a 1.60 percentage points narrowing in the operating margin to 24 per cent which crimped the profit growth.
Brokerage firm Emkay said the revenue and margins came in line with its expectations, while analysts at its peer Reliance Securities said IT services would not remain immune to worsening global macros in terms of rising inflation, economic slowdown, currency headwinds and likely cut on spending.
