TCS shares jump over 5 pc after Q2 profit rises 15 pc to Rs 13,884 crore
The IT major reports 11.2% revenue growth and raises annualised AI revenue to $3.1 billion, while expressing confidence in continued growth momentum despite US green card curbs
New Delhi, Oct 9 (PTI) Shares of Tata Consultancy Services (TCS) surged over 5 per cent on Friday after the company reported a 15 per cent jump in net profit to Rs 13,884 crore and pointed to continued growth momentum going forward.
The stock jumped 5.11 per cent to Rs 2,181.30 on the BSE.
At the NSE, the stock climbed 5 per cent to Rs 2,180.
The company's market valuation surged Rs 36,452.23 crore to Rs 7,88,670.72 crore during the morning trade.
The stock was the biggest gainer among the Sensex and Nifty firms during the initial trading.
The country's largest IT services company, the biggest source of revenues for Tata Sons, posted a net profit of Rs 12,075 crore in the year-ago period and Rs 13,349 crore in the preceding September quarter.
The company said its revenue from operations rose 11.22 per cent to Rs 73,188 crore in the July-September period from Rs 65,799 crore in the year-ago period. In the June quarter, its topline stood at Rs 72,275 crore.
About 10 per cent of overall revenue came from the artificial intelligence (AI) front, where the company upped annualised revenue to USD 3.1 billion from USD 2.6 billion in the quarter-ago period, Chief Executive K Krithivasan said in an analyst call.
For the reporting quarter, growth has been broad-based, Krithivasan said, adding that looking at the pipeline, deal signings and client conversations, he is confident of the growth momentum to continue.
Other IT stocks were also trading higher, including Infosys, Tech Mahindra, HCL Tech and Wipro.
Meanwhile, TCS on Friday said it did not expect the US action concerning the green card programme to affect its workforce strategy or customer engagements. The company cited the single-digit number of applications it had filed under the programme over the past two years and its focus on local hiring.
The US on Thursday suspended eight IT firms, including TCS, Infosys, Wipro, Cognizant and Microsoft, from a programme to apply for green cards for foreign workers, contending that the practice has shut out Americans from the job market. PTI