TCS shares climb nearly 3% post-earnings announcement; mcap jumps Rs 29,437 cr

New Delhi: Shares of Tata Consultancy Services (TCS) climbed almost 3 per cent on Thursday a day after the company reported a 16.83 per cent increase in its June quarter net profit to Rs 11,074 crore.

The stock climbed 2.47 per cent to settle at Rs 3,340.65 on the BSE. During the day, it rallied 3.24 per cent to Rs 3,366.

It was the biggest gainer among the BSE Sensex and NSE Nifty firms. At the NSE, it climbed 2.59 per cent to end at Rs 3,344.50.

The company's market valuation jumped Rs 29,437.08 crore to Rs 12,22,361 crore in tandem with rally in the stock.

A total of 2.69 lakh shares of the company were traded at the BSE and over 45.85 lakh shares on the NSE during the day.

The rally in the stock was instrumental in helping equity markets trade firm. The 30-share BSE Sensex ended 164.99 points, or 0.25 per cent, higher at 65,558.89, and the NSE Nifty went up by 29.45 points, or 0.15 per cent, to 19,413.75.

The Tata Group company had reported a net profit of Rs 9,478 crore in the year-ago period and Rs 11,392 crore in the preceding quarter.

Its revenue from operations increased 12.55 per cent on a year-on-year basis to Rs 59,381 crore and was marginally up from the preceding March quarter's Rs 59,162 crore.

TCS was the first major company to report its June quarter results.

It can be noted that with headwinds in its key markets, the USD 250-billion Indian IT sector is widely expected to report volatility in the near-term.

In a statement, the company said its order book stands at a "robust" USD 10.2 billion.

Its newly appointed Chief Executive Officer and Managing Director K Krithivasan said, "We remain confident in the longer-term demand for our services, driven by the emergence of newer technologies".