New Delhi: Tata Consultancy Services Ltd fell to its lowest level in more than two months in Mumbai trading after first-quarter revenue growth missed some analysts’ projections spurring concerns about outlook for the full year.

Shares declined as much as 2.4% to the lowest intraday price since 7 May and traded 2.2% lower at 2,466 as of 1:28pm local time.

Net income rose 13% to 5,710 crore in the quarter ended in June, Mumbai-based Tata Consultancy reported after market hours on Thursday. Profit beat the median of analysts’ estimates compiled by Bloomberg. Quarter-on-quarter revenue growth in dollar terms was 3.5%, trailing some analysts’ projections.

“TCS did not throw much light on second-quarter fiscal 2016, which has been modelled in as a strong growth quarter by us" at 5.5% quarter-on-quarter increase, Girish Pai, an analyst at Nirmal Bang Institutional Equities in Mumbai who rates the stock sell, wrote in a research note. “Second quarter will therefore witness a steep cut, leading to single-digit revenue growth in US dollar terms for full-year estimates."

Nomura Holdings Inc., Morgan Stanley and Barclays Plc were among brokerages that cut their estimates for full-year sales growth in dollar terms at Tata Consultancy. Staff attrition, which rose to 15.9% from 14.9% in the preceding three months, was cited as a concern by Credit Suisse Group AG, which retained its outperform rating on the stock.

“Weaker-than-expected first-quarter growth has raised concerns on growth expectations," Ashish Aggarwal and Sagar Lele, analysts at Antique Stock Broking Ltd. in Mumbai, wrote in an investor note Friday. “TCS would need to report a strong second quarter as well as second half to post double-digit" dollar revenue growth in the full fiscal year.

Tata Consultancy doesn’t provide forecasts. Bloomberg

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