Post its performance for Q1FY20 announced yesterday, as expected, TCS is in the limelight. In fact the stock has been losing for the last two days and fell over 3.2% during this period. Today, it opened almost 2.5% lower at Rs.2081 and went on to hit an intraday low at Rs.2070.10, down 3%.
Overall, it was a very flat performance. Blaming it on currency fluctuations and rising wage cost, the company posted the lowest EBIT margin in eight quarters at 24.2% v/s 25.1% (QoQ). Net profit was flat Rs.8131 crore.
The slowdown in BFSI verticals also led to this muted earnings for Q1. The numbers missed most estimates by analysts and that has led to the sell off today.
The company added 12,356 employees during the quarter, the highest in last 5 years.