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TCS stock hits lifetime high after stellar results
Shares of India's largest information technology services company Tata Consultancy Services spurted by 20 per cent to touch an all-time high in early trade on the BSE on Friday, boosted by smart growth in net profit for the first quarter of FY2011-12, which analysts termed as above market expectations.
The stock, which opened the day on a strong note, surged by 20 per cent to touch a lifetime high of Rs 1,350.30 in early trade on the BSE.
However, shortly thereafter, the scrip pared some of the gains and was trading at Rs 1,152, up 2.38 per cent from its previous close.
On the NSE, the scrip surged by 4.82 per cent to touch an early high of Rs 1,177.90.
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TCS hits lifetime high on BSE on stellar results
The scrip was the top gainer among the 30 stocks in the Sensex pack.
"TCS reported Q1, FY'12, results ahead of our estimates. The comprehensive outperformance on all parameters demonstrates strength of demand. However, we continue to believe that margin levers for the company are stretched. We revise our estimates upward and reiterate our 'BUY' rating," brokerage firm Prabhudas Lilladher said in a note.
TCS on Thursday posted a 26.7 per cent rise in net profit to Rs 2,415 crore for the first quarter of FY2011-12.
Its revenues grew by 31.4 per cent to Rs 10,797 crore for the period under review. The board has proposed a dividend of Rs 3 apiece on shares of Re 1 face value.
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TCS hits lifetime high on BSE on stellar results
"Results were encouraging and above the street expectation, which is why the stock is seeing good buying by the investors," Geojit BNP Paribas Financial Services research head Alex Mathews said.
Meanwhile, the BSE benchmark index Sensex was trading at 18,546.18, down 72.02 points, at 1054 hours.
For the first time, TCS went ahead of competitor Infosys in terms of earning before interest, taxes, depreciation and amortisation (Ebitda).
TCS reported a net profit (India GAAP, generally accepted accounting principles) of Rs 2,415 crore, up 26.7 per cent from Rs 1,906 crore in the corresponding quarter last year.
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TCS hits lifetime high on BSE on stellar results
On a sequential basis (trailing quarter ended March 31) the company's net profit saw a dip of 7.9 per cent from Rs 2,623 crore.
Revenue for the first quarter grew 31.4 per cent to Rs 10,797 crore compared to Rs 8,217 crore on a year-on-year basis. Sequentially, revenue grew 6.3 per cent.
From the June quarter, TCS has started following International Financial Reporting Standards (IFRS). Based on it, its net profit for the quarter at Rs 2,380 crore was up 27.7 per cent from Rs 1,863 crore in the corresponding quarter last financial year, but sequentially it was flat.
It once again beat Infosys in terms of performance and margin management with a volume growth of 7.4 per cent. Infosys had a volume growth of 4 per cent in the quarter.