TCS Shares Surge 4% on Q3 Earnings, Market Cap Up Rs 53,239 Crore

New Delhi, Jan 12 (PTI) Shares of Tata Consultancy Services climbed nearly 4 per cent on Friday, adding Rs 53,239.2 crore to its market valuation, after the company reported an 8.2 per cent growth in net income for the December quarter at Rs 11,735 crore.

The stock jumped 3.89 per cent to settle at Rs 3,881.70 on the BSE. During the day, it climbed 4.53 per cent to Rs 3,905.75.

It rallied 3.91 per cent to Rs 3,881.90 apiece on the NSE.

The company's market capitalisation (mcap) went up Rs 53,239.2 crore to Rs 14,20,333.97 crore.

In the equity market, the 30-share BSE Sensex jumped 847.27 points or 1.18 per cent to settle at a lifetime closing high of 72,568.45, and the Nifty climbed 247.35 points or 1.14 per cent to reach a lifetime closing peak of 21,894.55, powered by a rally in IT stocks.

From the Sensex and Nifty pack, Infosys, Tech Mahindra, Wipro, HCL Technologies and LTI Mindtree also climbed significantly.

The BSE Information Technology index jumped 5.06 per cent to 37,120.45. During the day, it reached its 52-week high of 37,175.31.

"Tata Consultancy Services reported in-line operating performance for the quarter," according to a report by YES Securities.

Largest software exporter Tata Consultancy Services (TCS) on Thursday reported an 8.2 per cent growth in net income for the December quarter at Rs 11,735 crore, driven by a massive growth in the home market that offset to a large extent the impact of a 3 per cent degrowth in the US market.

The top management of the Tata Group company said its revenue for the reporting quarter grew 4 per cent to Rs 60,583 crore driven by a strong double-digit growth in emerging markets, led by the home market on the back of a massive project from state-owned telco BSNL.

The company also declared a payout of Rs 27 a share, including a Rs 18 per share special dividend, which has the record date on January 19. The dividend comes on the heels of a mega Rs 17,000-crore buyback last month.

"TCS's Q3 operating performance beat estimates – revenue grew 1 per cent QoQ (1.1 per cent in CC terms) to USD7.28 billion, slightly higher than our estimate of 0.8 per cent QoQ (Quarter on Quarter) CC (Constant Currency) growth,"according to a report by Emkay Global Financial Services.