TCS posted a disappointing Q1FY18 performance, mainly because it was way below all estimates. It reported a 10% (QoQ) drop in net profit at Rs.5950 crore, much below all estimates. Plus, this was the biggest quarterly drop in net profit in two quarters. The wage hike shaved off 150 bps from the profit margins.

Revenue was flat at Rs 29,584 crore for the quarter under review against Rs 29,642 crore reported for the previous quarter ended March 31, 2017. All industry verticals, except retail and BFSI, exhibited strong growth at over 3.5% sequentially. Its  revenue from digital services stood at 18.9% , up 7.6 % sequentially.

In terms of geographies,Europe did the best with a 5.9% (QoQ) growth, followed by North America and UK.Latin America too did well with 2.8% growth.

It added 8 clients in over $1 million bands and 12 clients in over $10 million band for the quarter ended June 30.

In terms of employee parameters, total employee strength at the end of Q1 stood at 3,85,809 with net additions of 1,414 during the quarter. The total attrition rate (LTM) was at 12.4% including BPS, with IT attrition at only 11.6%.