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HomeBUSINESSTCS share price hits three-week low | Here's why

TCS share price hits three-week low | Here’s why

On the BSE, TCS share price was down by 4.44 per cent. On the NSE, TCS shares fell 4.40 per cent.

HIGHLIGHTS

  • On BSE, TCS share price was down by 144.90 points to Rs 3119.95
  • On NSE, TCS share price fell 143.65 points to Rs 3,121.80
  • TCS shares are down 12.7 per cent up to Friday’s close

Tata Consultancy Services Ltd (TCS) share price on Monday dropped more than four per cent to hit a three-week low. The shares dropped after the IT major missed estimates for quarterly profit on rising employee-related expenses, according to a Reuters report.

On the BSE, TCS share price was down by 4.44 per cent or 144.90 points to Rs 3119.95. On the NSE, TCS share price fell 4.40 per cent or 143.65 points to Rs 3,121.80.

Analysts flagged signs of a slowdown in demand after the IT services exporter on Friday said first-quarter profit came in at 94.78 billion rupees ($1.19 billion), well below estimates of 98.51 billion rupees, according to Refinitiv data.

“Although management expects tech spends to be resilient, we see clear signs of moderation in demand,” ICICI Securities said in a note, citing slowing hiring, muted deal growth and weak momentum in Europe, Reuters reported.

Operating margin for the quarter fell to 23.1 per cent from 25.5 per cent a year earlier, the Reuters report said.

TCS shares, which are down 12.7 per cent up to Friday’s close this year, are also set for their biggest intraday percentage fall in four weeks, as per the Reuters report.

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