TCS stock surges to record high in early trade on smart Q1 nos

Shares of Tata Consultancy Services (TCS) today jumped nearly 6 per cent to touch a record high, after the IT major posted a better-than-expected 15.5 per cent rise in consolidated net profit for the first quarter.

Cheering the smart numbers, shares of the IT firm opened the day on a robust note and further gained 5.64 per cent to Rs 1,753.90 -- its all-time high on the BSE.
At the NSE, the stock shot-up by 5.69 per cent to a record high of Rs 1,755.

The stock was the top gainer on both the key indices -- Sensex and Nifty during the morning trade.

Rally in the stock was significant in sending the BSE benchmark Sensex higher by 88.06 points to 20,216.47. TCS alone contributed 55.48 points to the overall Sensex gain in morning session.

"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 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.

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

"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 bps at Rs 760 crore, while impact on the margins has been Rs 160 crore which is an increase of 1.64 per cent.