TCS earnings for Q1FY22 came in much below expectations and that weighed on the stock price, which opened

The company ended Q1FY22 with a consolidated net profit at Rs.9008 crore, down 3% (QoQ) on a 4% rise in revenue from operations at Rs.45,411 crore.

Other income was down 23% at Rs.721 crore. There was a 3% growth in revenue in dollar terms a $6.154 million and up 2% in constant currency. The sharp 14% decline in India revenues impacted the growth or else ex-India growth was strong at 4.1%.

EBIT Margins were at 25,5%, down 130 bps, QoQ mainly due to wage hikes. Its total contract value (TCV) was at $8.1 billion, up 17% YoY but down 12% sequentially.

Headcount was up 20,409 v/s 19,388 (QOQ) and IT services attrition was at 8.6% v/s 7.2%.

The company announced an interim dividend of Rs.7/share.

Looking ahead, the CEO has assured that the company’s operating model remains resilient enough to tackle the third wave and remained positive that FY22 revenue growth would be better than FY21.

The stock, from its close of Rs.3257.10 yesterday, opened a bit high at Rs.3260, going up to hit an intraday high at Rs.3281 but profit booking at this stage, pulled down the stock into the red, going down to an intraday low at Rs.3211.85.