NEW DELHI: Shares of Tata Consultancy Services on Friday gained nearly 1 per cent in early trade after the company reported a 28.5 per cent jump in June quarter net profit. The stock started the trade in the green and gained 0.73 per cent to Rs 3,281 on the BSE.
As the trade progressed, it witnessed volatile trading and hit a low of Rs 3,211.85. At NSE, the scrip gained 0.72 per cent to Rs 3,282. The company's quarterly results were announced post market hours on Thursday. The country's largest software firm TCS on Thursday reported a 28.5 per cent jump in June quarter net profit at Rs 9,008 crore and called out the domestic business as a drag, which restricted its overall growth because of the second wave of COVID-19.
The company, a cash cow for the over USD 100 billion Tata group, said the June quarter results were a tale of two contrasting trends of healthy growth in core markets like the US and segments like banking, and the domestic business being a drag.
It, however, added that even in India, which has traditionally been an insignificant market for the firm, activity is showing some signs of improvement, and exuded confidence of meeting the overall double-digit revenue growth estimate for FY22 announced earlier.
The second wave dented revenues by as much as Rs 350 crore as businesses like passport issuances and tests-focused TCS iON remained impacted, its chief executive and managing director Rajesh Gopinathan told reporters.
Reacting to the results, analysts at domestic brokerage Reliance Securities said the revenue underperformance was a one-off and welcomed the significant deal wins. It added that TCS is set to be a key beneficiary of the uptick in technology spends over the medium term.