TCS closes 5% higher; market cap rises Rs 16,000 cr

PTI Updated - July 19, 2013 at 08:52 PM.

Shares of Tata Consultancy Services (TCS) on Friday settled with nearly 5 per cent gain, adding Rs 16,000 crore to market value, after the IT major posted better —than—expected 15.5 per cent rise in consolidated net profit for the first quarter.

The scrip jumped 5.71 per cent to Rs 1,755 -— its record high in intra-day trade, but finally ended the day at Rs 1,741.90, up 4.92 per cent from its previous close on the BSE.

At the NSE, the scrip ended 4.97 per cent 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.

“TCS Q1 beats street estimates. Broad based growth across all segments and signs of discretionary spending coming back are 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 per cent 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 per cent to Rs 17,987 crore from Rs 14,869 crore a year ago.

Published on July 19, 2013 12:31