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  5. TCS shares drop over 1.5% after US Dollar revenue declines in Q2

TCS shares drop over 1.5% after US Dollar revenue declines in Q2

TCS shares drop over 1.5% after US Dollar revenue declines in Q2
  • The IT bellwether reported a US Dollar revenue decline of 0.2% in Q2FY24.
  • A weak commentary by TCS has also triggered selling in other IT shares.
  • The stock outperformed the market ahead of the earnings announcement.


Shares of Tata Consultancy Services (TCS) fell more than 1.5% on Thursday, a day after the company announced its September quarter earnings. The stock dived 1.62% to Rs 3,551.25 apiece on the NSE. On the BSE, TCS shares declined by 1.6% to Rs 3,552.60 per piece, emerging as the biggest loser among Sensex shares.

On Wednesday, TCS reported an 8.7% year-on-year rise in net profit to Rs 11,342 crore in the September 2023 quarter and stated that the headwinds for the IT sector continue amid a sluggish economic climate. Moreover, the IT bellwether reported a US Dollar revenue decline of 0.2% in this period. This is the first time that this metric declined for the company in over three years.

"Yes, there is uncertainty because of which clients are focused more on optimisation, which results in the older projects getting optimised or some of them getting passed or reprioritised, resulting in muted or moderated revenue growth," its chief executive and managing director K Krithivasan said.

The stock may also be witnessing profit booking as it had outperformed the market ahead of the earnings announcement.

A weak commentary by TCS also triggered selling in other IT shares.

Infosys' shares dropped nearly 1% ahead of its financial results to be announced later in the day.

On the NSE, Infosys stock fell 0.78% to Rs 1,482.70 per apiece, while the scrip declined 0.74% to Rs 1,482.60 per piece on the BSE.

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