TCS shares jump nearly 5 pc post-December quarter earnings
TCS shares jump nearly 5 pc post-December quarter earnings
New Delhi, Jan 10 (PTI) Shares of Tata Consultancy Services (TCS) jumped nearly 5 per cent on Friday morning after the IT services company reported an 11.95 per cent jump in December quarter net profit to ₹12,380 crore.
The bellwether stock surged 4.73 per cent to ₹4,227.70 on the BSE.
At the NSE, it climbed 4.60 per cent to ₹4,225.
The company's market valuation soared ₹69,829.1 crore to ₹15,30,324.39 crore during the morning trade.
TCS emerged as the biggest gainer among the Sensex and Nifty stocks in an otherwise weak equity market trend.
Other IT stocks were also in demand, with Tech Mahindra, Infosys, HCL Tech and Wipro quoting in the positive territory.
"Results of TCS indicate that the IT sector will continue to remain resilient," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
The Tata Group company had reported a net profit of ₹11,058 crore in the year-ago period and ₹11,909 crore in the preceding September quarter.
The company's revenue grew 5.6 per cent to ₹63,973 crore against ₹60,583 crore in the year-ago period. However, it was down from ₹64,259 crore in the September quarter.
New order bookings stood at USD 10.2 billion against USD 7.9 billion in the year-ago, in what is generally called a seasonally challenging quarter due to the holiday season.
Its Chief Executive K Krithivasan said the macro factors afflicting the IT sector continued even in the reporting quarter but added that the new orders were across industries, geographies and service lines, which lends a "good visibility to long-term growth".
There are also early signs of a revival in discretionary spending, which have been elusive for a better part of the fiscal and are among the factors leading to the softer revenue growth of 4.6 per cent in the first nine months.
Krithivasan said discretionary spending is likely to increase from now and added that the calendar year 2025 will be better than 2024.
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