Tata Consultancy Services (TCS) saw its market capitalisation swell to Rs 6,52,082.92 crore after posting higher than expected March quarter results. The Bengaluru-headquartered firm registered an increase of Rs 41,300.92 crore in its market valuation after its stocks rose on the back of positive quarterly results.
TCS reported a 4.4 per cent increase in its net profit at Rs 6,904 crore during the quarter that ended on March 31. Moreover, the company said that it expects to manage a double-digit growth during FY19. Following this, TCS stock soared 7.2 per cent during the day to reach a 52-week high of Rs 3421.25 on BSE after opening at Rs 3,250. The stock jumped 6.76 per cent before settling down at Rs 3,406.40.
Even on NSE, TCS shares climbed to Rs 3,402.45 level, up by 6.62 per cent. The stock became the biggest gainer on both Sensex and Nifty. Talking about equity volume, 7.72 lakh TCS shares were traded in BSE, whereas more than 92 lakh shares of the company were traded during the day.
The Tata group flagship, which contributes around 85 per cent of the group’s profit, reported a revenue growth of 8.2 per cent at Rs 32,075 crore for the three months to March. In dollar terms, the company had its highest revenue growth in 14 quarters at 11.7 per cent.
“To some extent (it has been) a sobering year that it is both a time of optimism as well as the fact that the year has actually been lower (on revenue growth) than in the recent past,” TCS MD and CEO Rajesh Gopinathan said.
The Indian tech major has given a 120 per cent payout of the target variable pay for its employees after estimate defying Q4 results. The company has also announced a salary hike of two to six per cent depending on the geography.
It also announced a 1:1 bonus of shares and a dividend of Rs 29 a share, taking the total payout to shareholders at Rs 50 for the year. It has given out close to Rs 26,000 crore to the shareholders in dividends and bonuses in the year.businesstoday