TCS settles 5% higher; m-cap up Rs 16,000 cr on smart Q1 nos
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TCS settles 5% higher; m-cap up Rs 16,000 cr on smart Q1 nos

Last Updated: Friday, July 19, 2013, 17:07
 
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TCS settles 5% higher; m-cap up Rs 16,000 cr on smart Q1 nos
Mumbai: Shares of Tata Consultancy Services (TCS) on Friday settled with nearly 5 percent gain, adding Rs 16,000 crore to market value, after the IT major posted better -than-expected 15.5 percent rise in consolidated net profit for the first quarter.

The IT major's scrip jumped 5.71 percent to Rs 1,755 -- its record high in intra-day trade, but finally ended the day at Rs 1,741.90, up 4.92 percent from its previous close on the BSE.

At the NSE, the scrip ended 4.97 percent higher at Rs 1,743.

Following the upsurge in the stock, the market capitalisation of the company shot-up by Rs 16,000 crore to Rs 3,40,928 crore.

The scrip was the top gainer on both the key indices -- Sensex and Nifty. TCS alone contributed 56.10 points to the overall Sensex gain.

"Today IT stocks were in favour post better-than-expected quarterly results from IT major TCS," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

"TCS Q1 beats street estimates. Broad based growth across all segments and signs of discretionary spending coming back is big positive for the entire IT pack," said Vivek Mahajan, Head of Research, Aditya Birla Money.

Strong demand from across sectors and geographies coupled with forex gains helped TCS yesterday post a better-than- expected 15.5 percent jump in consolidated net profit at Rs 3,831 crore in the June quarter.

The company's total revenue, under the Indian IFRS accounting standards, rose 21 percent to Rs 17,987 crore from Rs 14,869 crore a year ago.

"It has been a great quarter in terms of volume. We have delivered a volume growth of 6.1 percent, the highest in the past seven quarters. If you look at constant currency growth, it's 4.83 percent and international revenue constant currency growth is 5.8 percent.

"So except for the domestic market, every other market has grown substantially," TCS Managing Director and Chief Executive N Chandrasekaran had said yesterday.

The IT giant said revenue gains on the rupee fall rose by 160 basis points to Rs 760 crore, while impact on the margins has been Rs 160 crore which is an increase of 1.64 percent.

Meanwhile, helped by buying at the TCS counter, other IT stocks also gained. HCL Tech gained 4 percent, Tech Mahindra (3.59 percent), Infosys (1.65 percent) and Wipro (1.49 percent).

Led by the gains in these stocks, the BSE IT index rose by 2.81 percent to 7,097.29 and was the top gainer among the 13 sectoral indices.

PTI



First Published: Friday, July 19, 2013, 12:59


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