TCS trades weak on disappointing Q1 EBIT margins

The stock dipped nearly 3% to Rs 2,376 on BSE in intra-day trade

Tata Consultancy Services (TCS) dipped nearly 3% to Rs 2,376 on BSE in intra-day trade after the company’s EBIT (earnings before interest and tax) margins in June quarter (Q1FY18) declined to 23.4%, down 230bps QoQ and 170bps YoY. The fall in EBIT margins was attributed to wage hike and INR appreciation.

The consolidated net profit for the quarter was down by 10% QoQ to Rs 5945 crore, the fall was also partly attributed to lower other income down 5.8% QoQ, on account of lower forex gains.

Analysts on an average had expected profit of Rs 6,225 crore for