TCS shares climb over 3 % after earnings announcement; market valuation jumps Rs 40,360 cr

New Delhi: Shares of TCS on Friday climbed over 3 per cent after the country's largest IT services player reported 8.7 per cent growth in the June quarter net profit at Rs 12,040 crore.

The stock went up by 3.10 per cent to Rs 4,044.35 on the BSE.

At the NSE, it rallied 3 per cent to Rs 4,044.90.

The company's market valuation jumped Rs 40,359.77 crore to Rs 14,59,626.96 crore in morning deals.

The stock emerged as the biggest gainer among the Sensex pack.

"The positive domestic cue is the better-than-expected numbers from TCS and positive management commentary which can lift most IT stocks," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

In the equity market, the 30-share BSE Sensex climbed 226.11 points to 80,123.45 in early trade. The NSE Nifty went up by 82.1 points to 24,398.05.

Tata Consultancy Services (TCS) on Thursday posted an 8.7 per cent year-on-year rise in its consolidated net profit at Rs 12,040 crore for the first quarter ended June 2024.

Net profit for the year-ago period stood at Rs 11,074 crore.

The company - which competes in the IT services market with the likes of Infosys, Wipro and HCLTech - reported 5.4 per cent increase in revenue at Rs 62,613 crore for the quarter just ended.

"I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets," K Krithivasan, Chief Executive Officer and Managing Director of TCS, said in a release.

TCS has declared an interim dividend of Rs 10 per equity share of Re 1 each.

Meanwhile, other IT stocks -- Infosys, Tech Mahindra, HCL Technologies and Wipro -- were also in demand.