Shares in Tata Consultancy Services fell to the lowest level in 52-weeks, dropping 2 per cent and breaching a new 52-week low touched on Tuesday.
The stock was last trading at Rs 2269, a drop of 2.5 per cent over Tuesday's close. The company reported quarterly numbers that lagged estimates and investors are now worried that growth momentum at TCS is slowing.
Most analysts were expecting a muted growth, as the third quarter is traditionally a weak quarter for most IT companies. Also, the company was affected by rains in Chennai where it lost crucial man days. Utilization rates were placed at 80.9 per cent, including trainees. EBIT margin for the company was placed at 26.6 per cent.
"All our industry segments have exhibited growth in a traditionally weak quarter
additionally accentuated by the impact of the Chennai floods. Our international business has grown smartly in CC terms with North America and Europe
leading the way among major markets and Latin America among growth markets," N Chandrasekaran, Managing Director and CEO of TCS said.