TCS shares up over 2% after company reports 12.2% jump in Q3 net

Shares of Tata Consultancy Services (TCS) on Thursday gained over 2 percent after the firm reported a 12.2 percent jump in December quarter net profit on handsome revenue growth, and guided towards maintaining the same momentum going forward.

The stock gained 2.25 percent to Rs 3,944.40 at the BSE.

On the NSE, it jumped 1.63 percent to Rs 3,923.

The country's largest software exporter TCS on Wednesday reported a 12.2 percent jump in December quarter net profit at Rs 9,769 crore on handsome revenue growth and guided towards maintaining the same momentum going forward on the back of a strong demand environment.

The company, the cash cow of the over $100 billion Tata Group, witnessed a 16.3 percent jump in its revenue to Rs 48,885 crore for the reporting quarter.

The company, which is sitting on cash and equivalent of over Rs 65,000 crore, also announced an up to Rs 18,000-crore buyback offer where it has committed to pay Rs 4,500 per share.

''The demand environment is strong and the possibility of growth headroom is very high. Our aim is to maintain the momentum and we will go all out for the same,'' TCS managing director and chief executive Rajesh Gopinathan told reporters.

Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd said, "Based on the results outcome we expect stock would react positively tomorrow which would be on the back of premium buyback price and we are overall optimistic on the stock with medium to long-term horizon."

(With inputs from PTI)

Published on: Thursday, January 13, 2022, 12:02 PM IST