TCS Shares Jump Over 4 PC Post Earnings Announcement

New Delhi: Shares of TCS climbed over 4 per cent on Friday after the country’s largest IT services company reported a 4.61 per cent increase in its June-quarter net profit, and guided towards an improvement in demand impacted by the West Asia crisis, returning in the ongoing quarter.

The bellwether stock jumped 4.11 per cent to Rs 2,132 on the BSE.

At the NSE, it climbed 4 per cent to Rs 2,133.30.

TCS on Thursday reported a 4.61 per cent increase in its June-quarter net profit to Rs 13,349 crore.

Other IT stocks were also trading in positive territory, driving the markets higher.

The 30-share BSE Sensex traded 786.77 points, or 1.04 per cent higher, at 77,541.02. The 50-share NSE Nifty surged 249.70 points, or 1.04 per cent, to 24,213. In the results that come amid heightened worries over the sustenance of growth in the USD 315 billion domestic IT sector in the age of artificial intelligence, TCS said its net income rose 8.5 per cent year-on-year to Rs 13,849 crore if one were to exclude exceptional items.

The company’s managing director and chief executive, K Krithivasan, said the demand environment remained sluggish during the reporting quarter amid ongoing conflicts and noted that Q1 also saw some clients deferring work. However, even though the conflicts continue, he sounded more sanguine.

“We are still optimistic that the demand will resume sometime in Q2 primarily because our customers have a significant amount of pent-up technology backlog to be completed,” he said on a call with analysts.

From a topline perspective, TCS’ revenues jumped by nearly 14 per cent year-on-year to Rs 72,275 crore in the June quarter and were up 2.23 per cent against the March quarter’s Rs 70,698 crore. It reported an annualised AI revenue of USD 2.6 billion, which was up 13.6 per cent quarter-on-quarter.

Krithivasan said the quarter reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds.

“As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth,” Krithivasan added in a statement.

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