New Delhi [India] July 11 (ANI): Stocks in IT services declined sharply on Monday, led by a sharp slump in Tata Consultancy Services shares.
The majority of the Nifty sectoral indices were in the green barring Nifty IT, which tumbled over 3 per cent at the time of writing this report.
TCS shares declined 4.5 per cent after the company reported a contraction in its operating margin by 2.4 percentage points year-on-year to 23.1 per cent in the first quarter of FY23.
The country’s largest IT firm, on Friday, reported a net profit of Rs 9,478 crore for the first quarter of the current financial year as compared to Rs 9,008 crore reported in the corresponding period of the last year, posting year-on-year growth of 5.21 per cent. However, the profit declined on a quarter-on-quarter basis.
The attrition rate in the Indian IT services major TCS was 19. 7 per cent in the past twelve months, while the company’s total workforce stood at 606,331 as of June 2022 with a net addition of 14,136 during the April-June quarter.
Apart from TCS, Wipro declined 2.5 per cent, Infosys declined 3 per cent, Tech Mahindra 2.4 per cent, HCL Technologies 3.1 per cent, and L&T Technology Services fell 1.5 per cent.
Many analysts believe growing fears of a recession might have weighed on demand for IT stocks. (ANI)