The American depositary receipts of Wipro Ltd. and Infosys Ltd. slumped in early trade respectively after IT giant Tata Consultancy Services Ltd. declared its first-quarter results on Thursday.
Wipro's ADR declined over 6% to 2.8880, while Infosys ADR fell nearly 4% to 18.07.
ADRs are securities issued by a US bank that represent ownership in shares of a foreign company. These securities are denominated in dollars and traded in US markets.
TCS reported a 1.6% quarterly fall in revenue to Rs 63,437 crore from Rs 64,479 crore. The analyst consensus estimate tracked by Bloomberg was Rs 64,655 crore.
Although, the company saw a 4% rise in consolidated net profit in quarter ended June to Rs 12,760 crore from Rs 12,224 crore in the previous quarter. Bloomberg had estimated profit at Rs 12,253 crore.
Earnings Before Interest and Tax declined to Rs 15,514 crore versus Rs 15,601 crore, estimate tracked by Bloomberg was Rs 15,703 crore. While EBIT margin stood at 24.5% versus 24.2% in the previous quarter. Bloomberg had estimated margin at 24.29%.
As of June 30, TCS increased its headcount by 6,071, bringing the total to 6.13 lakh. The IT services attrition rate was 13.8% over the past twelve months, the highest in nearly two years.
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