Due to the report card of the country’s largest IT company Tata Consultancy Services i.e. quarterly results being better than expected, the shares of the company are seeing a rise on Friday. The company’s shares saw an increase of more than 4 percent during the trading session. Due to which the company’s valuation has seen an increase of more than Rs 30 thousand crore in just 3 minutes. The country’s largest IT services company reported a 4.61 percent increase in its net profit in the June quarter and said that the demand affected by the West Asia crisis is expected to improve in the current quarter. Let us also tell you what kind of figures are being seen in TCS shares…
Strong rise in TCS shares
There was a strong rise in the shares of TCS, the country’s largest IT company, on the Bombay Stock Exchange. The company’s shares rose 4.11 percent to Rs 2,132 during the trading session. Whereas at 11.13 am the company’s share was trading at Rs 2072.10 with a rise of 1.19 per cent. However, the company’s shares started at Rs 2,109.95. On the other hand, on NSE it increased by 4 percent to reach 2,133.30. TCS on Thursday reported a 4.61 per cent increase in its net profit for the June quarter at Rs 13,349 crore. There was a rise in other IT stocks also, due to which the market went up. The 30-share BSE Sensex was trading 786.77 points or 1.04 per cent higher at 77,541.02. The 50-share NSE Nifty rose 249.70 points or 1.04% to 24,213.
TCS MD’s statement
In the results, which came amid growing concerns over maintaining growth in the $315 billion domestic IT sector in the era of artificial intelligence, TCS said that if exceptional items are excluded, its net income increased by 8.5 percent year-on-year to Rs 13,849 crore. The company’s managing director and CEO, K Krittivasan, said the demand environment remained subdued amid ongoing conflicts during the reporting quarter and added that some clients postponed work in the first quarter. However, despite the continuing struggle, he appeared more hopeful. He said in a conversation with analysts that we are still hopeful that demand will restart sometime in the second quarter, mainly because our customers have a lot of technology related work (pent-up backlog) left to complete.
How were the quarterly results?
From a topline perspective, TCS’s revenue in the June quarter grew by nearly 14 per cent year-on-year to Rs 72,275 crore as compared to Rs 70,698 crore in the March quarter, an increase of 2.23 per cent. The company recorded annual AI revenue of US$2.6 billion, which was 13.6 percent more than the previous quarter. Kritivasan said that despite geopolitical and macro-economic challenges, this quarter reflects the continued pace of growth and the strength of our strategic position. Kritivasan said in a statement that as clients increase investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion capability, superior client mining and growing ecosystem partnerships position us well to convert these opportunities into sustained growth.
Increase of 30 thousand crores in company’s valuation
Due to increase in shares of the company, there has been an increase of more than Rs 30 thousand crore in valuation. According to the data, the valuation of the company was Rs 7,40,750.93 crore a day earlier, which reached Rs 7,71,227.44 crore within 3 minutes of the opening of the stock market. This means that there was an increase of Rs 30,476.51 crore in the valuation of the company. If experts are to be believed, we may see further increase in the shares of the company in the coming days.
