New Delhi: Shares of the country's largest software exporter Tata Consultancy Services (TCS) briefly touched 3406.50, its lifetime high on Friday after the company yesterday reported a 4.4 percent growth in its consolidated net profit at Rs 6,904 crore for the March 2018 quarter and its board recommended a 1:1 bonus share issue.
At 2.48 pm shares of TCS were trading up 6.43 percent to Rs 3395.90 apiece. The rally in TCS shares pushed its market cap by more than Rs 40,000 crore. The IT major is the country's most valued firm with a market valuation of Rs 6,50,092.07 crore.
An Economic Times report said that if the share price of the IT bellwether hits the Rs 3,448 level, it will hit a market capitalisation $100 billion (Rs 6,60,000 crore), India's first company to enter the mark.
Stating that fiscal 2017-18 has been a "sobering year" on slower revenue growth, TCS guided towards a better show in fiscal 2019.
The Tata group flagship, which contributes around 85 percent of the group profit, reported a revenue growth of 8.2 percent at Rs 32,075 crore for the three months to March. In dollar terms, the company had its highest revenue growth in 14 quarters at 11.7 percent.
For the full fiscal year to March 2018, the company saw its net profit dip 1.7 percent to Rs 25,826 crore, though revenue rose 4.3 percent to Rs 1.23 lakh crore.
For the quarter under review, TCS reported a USD 185 million increase in dollar revenue, the highest ever quarterly growth in its history.
TCS has announced a wage hike of 2-6 percent depending on the geography, while it has also announced a 120 percent payout of target variable pay.
It also announced a 1:1 bonus of shares and a dividend of Rs 29 a share, taking the total payout to shareholders at Rs 50 for the year. It has given out close to Rs 26,000 crore to the shareholders in dividends and bonuses in the year.
With PTI Inputs